1. Years ago I was taught that the extra motivation generated by a reasonable salary increase lasted less than 4 weeks. As a human resource manager, how might you non-financially motivate employees? As an employee, what motivates you?

2. In your own words explain how value chain analysis can be used to make a firm more competitive.

3. Mich Inc., a hardware store, has a rating system in place that rates employees on their friendliness, usefulness, and product knowledge. Based on the ratings an employee receives, he or she gets an incentive. The compensation strategy followed by Mich is most closely described as a:

1. Customer-focused strategy.

2. Cost-cutter strategy.

3. Innovator strategy.

4. Differentiation strategy.