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CIMA Exam CIMAPRA19-E03-1 Topic 4 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 102
Topic #: 4
[All CIMAPRA19-E03-1 Questions]

HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output. HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.

HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.

Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved 90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.

Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)

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Suggested Answer: A, D, E

Contribute your Thoughts:

Aleshia
1 months ago
Ah, the old 'carrot and stick' approach - except the carrot is made of lead and the stick is on fire.
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Nydia
1 months ago
So they want us to work in the danger zone for a measly 30% bonus? Sounds like a recipe for 'danger, Will Robinson!'
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Simona
11 days ago
Worker 2: Yeah, I'd rather stick to the current bonus scheme and stay safe.
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Simona
12 days ago
Worker 1: I agree, it's not worth risking our safety for just a 30% bonus.
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Renea
1 months ago
This proposed scheme sounds like a recipe for disaster - I bet the workers will start cutting corners to hit those targets.
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Kimbery
1 months ago
Hold up, so they want us to work harder for a 30% bonus? That's hardly an incentive.
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Cyril
2 days ago
Worker 1: I hope they reconsider the new bonus scheme.
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Nichelle
8 days ago
Worker 3: I agree, it's not much of an incentive for the risk we take.
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Bette
9 days ago
Worker 2: Yeah, it doesn't seem worth it. I already work in a dangerous environment.
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Sharika
1 months ago
Worker 1: I heard they want us to hit 90% of our target for a 30% bonus.
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Krissy
2 months ago
But on the other hand, maybe the higher bonus will actually motivate them to work harder.
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Ilona
2 months ago
Increasing productivity at the cost of worker safety? That's a disaster waiting to happen.
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Holley
25 days ago
E) There could be a rise in the level of workplace accidents.
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Marnie
26 days ago
C) Production workers could consider the new target as unachievable.
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Lashunda
29 days ago
A) The extra production output will lead to an increase in inventory.
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Lasandra
2 months ago
Yeah, I agree. It could demotivate them if they feel like they can't reach it.
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Latonia
2 months ago
The new target of 90% is way too high! That's going to demotivate the workers for sure.
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Gerardo
19 days ago
Worker 3: I agree, it's demotivating to have such a high target.
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Lucina
20 days ago
Worker 2: Yeah, it's way too high. I don't think I can reach that.
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Juan
21 days ago
Worker 1: The new target of 90% is impossible to achieve.
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Evan
2 months ago
I think the production workers might find the new target unachievable.
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