Why Are Flexible Reward Systems Becoming an Increasingly Popular Form

question 63

Multiple Choice

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

• A) Employees value flexible reward systems and may develop strong loyalty and attachment to an employer who provides them.
• B) The flexible reward system allows the organisation to trade off salary increases for benefit increases as ways of rewarding the employee.
• C) Flexible reward systems allow the organisation to standardise the benefits package for all employees.
• D) Organisations get fewer benefits for their rand than they do with standard approaches, but their employees are more satisfied.
• E) Flexible systems require less administrative time to develop and maintain than conventional approaches.

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Definitions:

Product Misuse

A defense against product liability that may be raised when the plaintiff used a product in a manner not intended by the manufacturer. If the misuse is reasonably foreseeable, the seller will not escape liability unless measures were taken to guard against the harm that could result from the misuse.

Defense

Legal strategies and arguments used by a defendant in litigation to counteract the claims made by the plaintiff.

Product Liability

Refers to the legal responsibility of manufacturers and sellers to compensate for harm caused by defective products they market.

Reasonably Foreseeable

Circumstances or outcomes that can be anticipated by a person through the exercise of normal judgement.