The Practice of Secret Pay in a Compensation System Generally

question 12

Multiple Choice

The practice of secret pay in a compensation system generally leads to:

• A) managers being more careful in their compensation decisions because they have to defend them.
• B) an increase in the cost of mistakes in the pay-making decisions.
• C) greater pay dissatisfaction among employees.
• D) an egalitarian pay system.

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Definitions:

Toshiba

Toshiba is a diversified Japanese multinational conglomerate that operates in various sectors including electronics, industrial, and energy systems.

Lease

A contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for periodic payments.

Opportunity Cost

The worth of the best alternative given up due to making a decision.

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.