One Objective of a Carefully Managed Compensation Plan Is to Keep

question 158

True/False

One objective of a carefully managed compensation plan is to keep labor costs low.In order to achieve this objective,a firm should strive to keep wages,salaries and benefits at or below the compensation levels of its competitors.
A well-managed compensation plan does strive to keep labor costs low.However,this does not necessarily mean that a firm should strive to pay wages and salaries that are at or below the level offered by competitors.Compensation is one of the main marketing tools that companies use to attract employees.Offering low wages may make it difficult to compete for the best employees.A carefully managed compensation and benefit program can help a firm accomplish a variety of objectives: attracting the kinds of people the organization needs,providing incentives for employees to work productively,keeping valued employees from leaving for better-paying positions with competitors (or even starting their own business),and maintaining morale by providing workers with some sense of financial security.These objectives are not necessarily accomplished by paying low wages.Instead,they may enable the firm to keep labor costs low by ensuring high productivity from a loyal workforce.

Recognize the implementation and efficacy of different leadership development approaches used by organizations.

Know how developmental methods can help managers with self-awareness and understanding their personal values.

Identify the research findings on management development practices and the significance of incorporating challenges, feedback, and learning opportunities for effective leadership growth.

Understand the concept and calculation of risk-adjusted metrics such as the Treynor measure, Sharpe measure, and Jensen's alpha.

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Definitions:

Job Satisfaction

The level of contentment employees feel about their job roles, which influences their performance and retention.

Smaller Companies

Businesses that operate on a relatively modest scale in terms of their revenues, employees, or market share compared to larger corporations.

Gender Differences

The distinctions in characteristics, behaviors, roles, and cultural expectations traditionally associated with being male or female.

Counterproductive Behaviors

Actions by members within an organization that hinder its objectives or reduce its effectiveness, such as sabotage or theft.