Compensation Systems Can Help Create the Conditions That Contribute to High

question 71

Multiple Choice

Compensation systems can help create the conditions that contribute to high performance. Consequently, organizations can increase empowerment and job satisfaction by

• A) communicating the basis for decisions about pay.
• B) disassociating compensation from performance measures.
• C) discouraging negotiations regarding pay.
• D) limiting employee participation in management.
• E) limiting the use of gainsharing and profit sharing.

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Definitions:

Labor Changes

Adjustments in the workforce, including alterations in the number of workers, the quality of labor, or employment conditions.

Unit Elastic

A demand or supply situation where the percentage change in quantity demanded or supplied is exactly equal to the percentage change in price.

Elasticity of Demand

It refers to the responsiveness of the quantity demanded for a product to a change in its price, showing the sensitivity of consumers to price adjustments.

Market Period

A period during which sellers are unable to change quantity offered for sale in response to a change in price.