The Two Basic Compensation Philosophies,which Should Be Seen as Opposite

question 56

Multiple Choice

The two basic compensation philosophies,which should be seen as opposite ends of a continuum,are the ____ and the ____ orientations.

• A) competency, productivity
• B) exempt; non-exempt
• C) entitlement; performance
• D) market-driven, equity-driven

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Definitions:

Human Action

The study of human behaviour, particularly in the context of individuals' decisions and actions in the economy.

Rational Choice

A theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Irrational Choice

A decision made contrary to the conventional understanding of economic rationality, not maximizing utility.

Incentives

Rewards or penalties that motivate individuals to perform an action or avoid it.