The CEO of a pharmaceutical sales company wants to find a way to increase both the sales figures as well as the effort level of the company's employees. A lower-level manager suggests that a tournament system that rewards the salesperson with the highest level of sales with a one-time $50,000 bonus would certainly increase both sales and effort across the company. What are the pros and cons of implementing such a program? Should the CEO adopt a program such as this? If so why? If not, why not?
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