Why Are Flexible Reward Systems Becoming an Increasingly Popular Form

question 60

Multiple Choice

Why are flexible reward systems becoming an increasingly popular form of compensation systems?

• A)The benefits of the flexible approach outweigh the costs, and employees may develop strong loyalty and attachment to an employer.
• B)The flexible reward system allows the organization to trade off salary increases for benefit increases as ways of rewarding the employee.
• C)Flexible reward systems allow the organization to standardize the benefits package for all employees.
• D)Organizations get fewer benefits for their dollar than they do with standard approaches, but their employees are more satisfied.
• E)Flexible systems require less administrative time to develop and maintain than do conventional approaches.

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Definitions:

Center Line

In quality control charts, this line represents the average or mean value around which data points are expected to fluctuate.

Lower Control Limit

A statistical boundary in quality control processes, below which a process variation is considered non-random and indicative of a systemic issue needing correction.

Range

The difference between the highest and lowest values in a data set, used as a measure of statistical dispersion.

Natural Causes

Factors that affect events or conditions based on processes inherent to the natural world, as opposed to human-made influences.