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Typical elements of compensation packages (6 marks)
b. Outline the key assumptions of traditional agency theory and their influence on approaches to compensation (8 marks)
c. Explain the difference between extrinsic and intrinsic motivation and the relationship between the two motivations (6 marks)
d. How might an employee’s attitude to risk influence their desired compensation package? (4 marks)
e. How might the time period when employee receives a financial benefit influence they desire for the benefit? (4 marks)
f. What role do fairness considerations have when determining compensation? (4 marks)
g. Why an executive compensation committee may provide benefits in determining compensation. (3 marks)
h. How to structure an executive compensation committee to achieve the best outcomes. (6 marks)
i. Conclusion: use the information in your previous answers to develop recommendations for determining compensation that enhance job satisfaction and work motivation.(4 marks)
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j. Appropriate report formatting (title page, table of contents, introduction and appropriate headings) (6 marks)
k. Adequate in-text references and reference list following Harvard style (4 marks)
Part I [Total marks 45]
(i) Read the paper by Gold, Gronewold and Pott (2012):
a. What is the aim of the research paper/project? (3 marks)
b. Draw a table to illustrate the 2 x 3 design (p. 292) showing the six groups and the different information that each group received. (6 marks)
c. What was the purpose of the manipulation checks? (4 marks)
(ii) Read the study by Agyei, Aye and Owusu-Yeboah (2013); along with the study by Okafor and Otalor (2013):
a. Briefly outline the research aims of each study (4 marks)
b. Explain how each study attempts to measure the audit expectation gap and comment on which approach you think is more rigorous, stating reasons why you believe one approach is superior in its rigor. (6 marks)
c. Explain how each study selects the research participants and comment on which approach you think is more rigorous, stating reasons why you believe one approach is superior. (6 marks)
d. Outline the response rate in each study and whether you think the response rates are adequate in each study. (6 marks)
e. Explain how each study goes about analysing the data that is collected and comment on which approach you think is more rigorous, stating reasons why you believe one approach is superior in its rigor. (6 marks)
f. Briefly outline two other significant flaws that you have noticed in the studies. (4 marks)
