About 10 years ago, there were several bank mergers. shortly after big bucks bank bid on the bank of plenty, a story hit the local newspapers about the investigation into the purchase of several thousand shares of stock of the bank of plenty by three of its top executives, just prior to the announcement that big bucks bank planned to buy bank of plenty. upon close examination by the sec (securities and exchange commission) it was determined that the stock purchases were an illegal maneuver on the part of these executives. this is an example of insider trading. the executives were "banking" on the stock price rising sharply when the purchase announcement was made public.

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above