Senior Management in Your Organization Wants You to Explain to the Board

question 174

Multiple Choice

Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work. It would be correct to tell them that the ideal compensation system must

• A) keep labor costs as low as possible.
• B) provide for employee needs while keeping labor costs within reasonable limits.
• C) pay the highest wages in the industry.
• D) encourage employees to work for as little as possible to keep company profits as high as possible.
• E) focus attention on benefits rather than on salaries, which are kept low on purpose.

---

Definitions:

Social Norms

Unwritten rules or expectations for behavior within a social group, which shape individuals' actions and interactions.

Morally Justifiable

Actions or decisions that can be defended as right or acceptable according to ethical principles.

Unethical Purposes

The use of actions or strategies intended to promote personal or organizational gain through means that violate moral or professional principles.

Social Rejection

The experience of being excluded, ignored, or dismissed by others or within a social group.