Question Detail
Question
Which compensation philosophy emphasizes seeing salaries paid to workers as an investment that will have a multiplier effect on productivity and the bottom line, and promotes a reward system that is just, fair, equitable, transparent, and rewarding employees according to their efforts, performance, and contribution?
Correct Answer
Option D is the correct answer.
Detailed Explanation
Page 10 describes this as the 'positive philosophy': 'While others hold the view that salaries paid to workers should be seen as an investment that will have a multiplier effect on productivity or the bottom line. This is the positive philosophy. The positive compensation/reward philosophy places a premium on having a reward system that is just, fair, equitable, transparent, and rewarding employees according to their efforts, performance/ contribution.'
Hint
The description highlights a forward-looking and fair approach to compensation.