Cases in Cost Management 3rd Edition by John Shank

Exercise 2

Freddie and his father are genuinely perplexed about this labor productivity problem. Can the company expect a better result if it manages compensation better Or, is low productivity a fact of life for which low pay is the consequence in a business where "committed and motivated" workers are just not necessary
Your assignment is to evaluate the various claims and counterclaims and to recommend a course of action. Exhibits 1 and 2 are reference sources on the "philosophy" of work and workers.
Comment on the counter-arguments by Freddie's father in support of the current pay system.