Which of the Following Statements About Pay Secrecy Is True

question 44

Multiple Choice

Which of the following statements about pay secrecy is true?

• A) The free open discussion of salaries and wages is the norm in U.S. business.
• B) Perceived inequities may arise due to poor implementation of a well-designed compensation plan.
• C) Pay secrecy makes life difficult for managers.
• D) Compensation professionals and managers are the only ones who should have responsibility for designing the compensation system.
• E) Managers typically abhor pay secrecy.

---

Definitions:

Egocentrism

In developmental psychology, a characteristic of young children where they are unable to see a situation from another person's point of view.

Three-Mountain Task

A cognitive developmental measure designed by Jean Piaget to study children's ability to take on another's perspective and understand that different viewpoints exist.

Preoperational Child

A developmental stage posited by Piaget, typically aged 2 to 7 years, marked by the beginning use of symbols and language but limited in logical reasoning.

Subtraction

A mathematical operation that represents the process of taking one quantity away from another, resulting in the difference.