Bachelor of General Studies (BGS) Degree Practice Exam

Which approach does a company use when it emphasizes detection and punishment to shape employee behavior?

1. Compliance-based approach

2. Values-based approach

3. Profit-driven strategy

4. Market-oriented strategy

The correct answer is: Compliance-based approach

The compliance-based approach is centered around adhering to established laws, regulations, and internal policies, ensuring that employees act within defined boundaries through detection and punishment mechanisms. This approach is designed to mitigate risks associated with noncompliance by creating a system where employees are aware of the consequences of their actions. This includes regular monitoring, auditing, and reporting processes that enforce compliance through penalties for violations. In a compliance-based approach, the emphasis is placed on rules and regulations, which sets clear expectations for behavior. This structure serves to deter unethical practices by making employees aware that any unfollowed protocols will lead to identifiable repercussions. By fostering a culture where compliance is prioritized through monitoring and punishment, the organization aims to maintain integrity and ethical standards within the workforce. In contrast, the values-based approach focuses on promoting shared values and ethical behavior among employees, encouraging them to act according to the collective principles rather than solely fearing punishment. Meanwhile, profit-driven and market-oriented strategies relate more to business performance and market positioning rather than the specific aspect of employee behavior management through detection and punishment.