The Benefits Portion of a Compensation Package Most Likely Plays

question 1

Multiple Choice

The benefits portion of a compensation package most likely plays an important role in:

• A) rewarding employees' performance.
• B) attracting and retaining employees.
• C) managing the profits of the company.
• D) managing employee performance.

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Definitions:

Overconfidence

A cognitive bias where an individual's subjective confidence in their own abilities is greater than their objective accuracy.

Representativeness Heuristic

A mental shortcut that involves making a decision based on how closely a new situation or object resembles a prototype or typical case.

Fixation

The inability to see a problem from a new perspective, by employing a different mental set.

Heuristics

Mental shortcuts or rules of thumb that allow people to make decisions and solve problems quickly and efficiently, though not always perfectly accurate.