Suppose That the Organization Uses Performance-Based Compensation

question 99

Multiple Choice

Suppose that the organization uses performance-based compensation. Most employees, however, consider their pay raises inequitable. Which of the following statements presents the most likely cause?

• A)The majority of employees are poor performers.
• B)The work performed by the organization does not lend itself to objective performance appraisal.
• C)The organization is performing poorly.
• D)Some part of the appraisal process has failed.

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Definitions:

Limited Resources

The finite availability of inputs such as time, money, labor, and materials, which restricts the ability to meet demand or achieve certain objectives.

Maximizes Profit

A strategy or action aimed at increasing the difference between total revenue and total costs to the highest possible level.

Constraints

are limitations or restrictions that affect the strategies and outcomes of a decision-making process or production operation.

Region Of Optimality

The set of all solutions that optimizes a given objective function within a feasible region.