If a Particular Compensation System Has Been Successful in One

question 26

True/False

If a particular compensation system has been successful in one organization,it is very likely that replicating that compensation system will bring success in another organization.

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Definitions:

Lump-sum Merit Pay

A one-time payment given to an employee as a reward for performance, rather than a continuous salary increase.

Base Salary Levels

The foundational rate of pay before bonuses, benefits, or allowances are added, usually determined by role complexity and market rates.

Profit-sharing Plans

Compensation schemes where employees receive a share of the company's profits, typically in the form of bonuses or equity.

Motivational Value

The significance or importance that an individual places on specific outcomes or rewards that help in driving their behavior towards achieving goals.