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In the case of Five Star Beer, Mr. Zhao attempts to eliminate the two first two sources of distortions by implementing by introducing monetary punishment and compensation systems based on primarily effort for the sales force in an attempt to align the interests of the employee with those of the management...
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However, the implementation of such systems leads the organisation to experience the third source of distortion, imperfect verifiability, where management attempts to offer incentives for the sales force but they instead abuse the recording of sales due to management's inability to verify the recordings without extensive monitoring...
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Discuss How The Converging Interests Of Farming Ranching And The Railroad Contributed To The Closing Of The Frontier And The Rise Of Conflicting Interests That Would Strengthen Populism And Lead To Attempts To Address The Abuses Of The Railroads.
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