Question Detail

IRP 321 Compensation Management policies Objective Question
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Question

The 'positive compensation/reward philosophy' emphasizes which of the following aspects of a reward system?
Options
A Reducing labor costs to boost the bottom line.
B Seeing salaries as an investment with a multiplier effect on productivity.
Correct Answer
C Minimizing employee benefits to maximize organizational profit.
D Prioritizing external market rates over internal fairness.
Correct Answer

Option B is the correct answer.

Detailed Explanation

Page 10 states that the positive compensation/reward philosophy views salaries paid to workers as an investment that will have a multiplier effect on productivity or the bottom line, and emphasizes a reward system that is just, fair, equitable, transparent, and rewards employees according to their efforts, performance/contribution.

Hint

Consider the long-term view of employee remuneration.

Question Info

Course: IRP 321
Topic: Compensation Management policies
Type: Objective
Difficulty: Not specified
Question 47 of 59
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