One of the First Steps in Developing a Compensation Plan

question 85

Multiple Choice

One of the first steps in developing a compensation plan is

• A)to determine your organization's salary philosophy.
• B)to develop a job description.
• C)to create job analysis.
• D)to pay an above-market salary to create loyalty.

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Definitions:

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external factors and others' actions to their personality or disposition.

Self-Serving Bias

A common tendency for individuals to attribute their successes to personal characteristics, while attributing their failures to external factors.

Proximity

The physical or psychological closeness between people, often influencing attraction and relationships.

Propinquity

The phenomenon wherein people are more likely to form friendships or relationships with those who are geographically close or frequently encountered.