Joe, a Supervisor, Believes That Employees Should Participate in Pay-Related

question 86

Multiple Choice

Joe, a supervisor, believes that employees should participate in pay-related decisions. He says that it will most likely help in the success of incentive plans, and the plans are more likely to influence employee behavior as desired. Which statement weakens this argument?

• A) Employees will make decisions that are in their best interests at the expense of the organization's interests.
• B) It is difficult to monitor an employee's work output when decisions are made by the employee.
• C) When employees become more involved in pay decisions, they neglect the work assigned to them.
• D) Employees should be a part of the human resource department to be involved in pay-related decisions.
• E) It will have a negative impact on the top-level management of the company.

---

Definitions:

IFRS 9

An International Financial Reporting Standard that addresses the accounting for financial instruments, specifying how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

Other Comprehensive Income

Income that is not part of net income, including unrealized gains and losses on certain types of investments, which is recorded directly in equity.

Significant Influence

The capacity to exert power over, or sway, the operating and financial policies of another entity without having control over it.

Non-Strategic Investment

An investment made without the intention to influence or control the operation or management of the invested entity.