Adopting an Open Pay System in an Organization

question 56

Multiple Choice

Adopting an open pay system in an organization:

• A) gives rise to jealousy and resentment among employees.
• B) motivates low performers to work harder for better compensation.
• C) causes pay compression in the long run.
• D) causes high employee turnover.

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Definitions:

Units

A standard or basic quantity into which an item of supply is divided, issued, or used.

Clothing

Garments and articles worn on the body, typically made from fabric or textiles.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Income

The sum of all a household’s wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. It is a flow measure.