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Outcome-Based Incentive Compensation Systems Can Only Be Used to Motivate

question 66

True/False

Outcome-based incentive compensation systems can only be used to motivate appropriate decision-making behavior when employees are empowered to understand the compensation system.


Definitions:

Actor-Observer Bias

A cognitive bias where individuals attribute their own actions to situations and others' actions to their personalities.

Latané And Darley

They are social psychologists known for their work on the bystander effect, demonstrating that the presence of others affects an individual's likelihood to help.

Central-Route Processing

A method of persuasion that involves deeply processing the content of a message, considering the arguments and evidence in detail.

Peripheral-Route

A method of persuasion that relies on superficial cues, rather than logical arguments, to influence people's attitudes or behaviors.

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