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IRP 321 Compensation Management policies Objective Question
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Question

What is the 'negative philosophy' of compensation, as described in the document?
Options
A Salaries should be an investment for productivity.
B Compensation should be just, fair, and equitable.
C Employees' compensation is a cost to the organisation and should be reduced to maximise profit.
Correct Answer
D Compensation should be transparent and performance-based.
Correct Answer

Option C is the correct answer.

Detailed Explanation

Page 9 describes the negative philosophy: 'Some managers or employers believe that employees' compensation is a cost to the organisation and as such salaries should be reduced to enable the organisation to maximise profit. This is the philosophy of cost minimisation or negative philosophy.'

Hint

Think about how some employers might view compensation from a financial perspective, specifically regarding costs and profits.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 8 of 59
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