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:

Common Share

A type of equity security that represents ownership in a corporation and entitles the holder to vote at shareholders' meetings.

Voting Rights

The entitlement of shareholders to vote on corporate matters, typically in proportion to their share ownership.

Share Classes

Different types of stock in a company, each offering specific rights, dividends, or ownership values.

Required Rate Of Return

A rephrased definition: The minimum return investors expect from an investment, considering its risk level.