When Administering a Compensation Program

question 39

Multiple Choice

When administering a compensation program:

• A) actual pay rates should not be shared outside of the human resources department.
• B) open pay systems support the notion that compensation is too complicated to try to explain to employees and should be kept confidential.
• C) managers who make compensation decisions must receive training on the process and how they should communicate about compensation.
• D) reviewing external market data and internal alignment every five years would be sufficient.
• E) changes should be made when employees raise questions and after careful market surveys have been completed rather than updating for the sake of updating.

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Definitions:

Multidimensional

Referring to phenomena, concepts, or objects that have several different aspects, components, or layers, making them complex and varied in their characteristics.

Cognitive Process

Mental activities involved in acquiring, processing, and storing knowledge, such as perception, reasoning, and memory.

Biological Process

A process that is vital for the living organism and occurs due to complex interactions among biological systems.

Homeostasis

the process by which living organisms regulate their internal environment to maintain a stable, constant condition, despite changes in the external environment.