After reading the case study and required readings answer the questions attached.

After you read the case study and readings, address the following questions:

1. What types of work behaviors did AIG intend to encourage through its retention bonus
   

   plan?
   

2. Which needs seem to be important to the employees of AIG’s Financial Products unit?
   

3. Using the model of the individual–organizational exchange relationship, explain the
   relationship that employees of AIG’s Financial Products unit believed they had with the
   company. How was this exchange relationship violated?
   

4. Which motivation theory do you think has the most relevance for understanding the
   responses of the Financial Product employees to the implementation and unraveling of the
   retention bonus plan? Explain the reasoning behind your answer.
   

5. The amount of compensation earned by executives3⁄4as well as by professional athletes
   and famous actors/actresses and musicians3⁄4often spark emotionally charged debate. Do
   

   you believe the $1 million plus retention bonuses received by 73 employees of AIG’s
   Financial Products was excessive? Why or why not?
   

6. Do you think that the various decisions made by Kenneth Feinberg with respect to
   executive compensation at AIG were justified? Explain the reasoning behind your answer.