The Lowest Level Recommended for a PFP System Is Four

question 40

True/False

The lowest level recommended for a PFP system is four percent of the base salary in order for the money to be considered significant and for the PFP system to be effective.

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Definitions:

Acquired Needs Theory

A motivational theory that suggests individuals are driven by their desire to fulfill specific needs acquired over time, such as achievement, affiliation, and power.

Two-Factor Theory

A psychological theory proposed by Frederick Herzberg that explains motivation in the workplace, suggesting that there are factors that cause job satisfaction and factors that cause job dissatisfaction, acting independently.

Job Dissatisfaction

The feeling of unhappiness or discontentment an employee experiences regarding their job, often due to factors like working conditions, remuneration, or lack of recognition.

Comparable Worth

The principle that jobs of equal value to an organization should receive similar pay, regardless of the nature of the job or who holds it.