The practice of secret pay in a compensation system generally leads to:
A) managers being more careful in their compensation decisions because they have to defend them.
B) an increase in the cost of mistakes in the pay-making decisions.
C) greater pay dissatisfaction among employees.
D) an egalitarian pay system.

Question

Quizplus · Accepted Answer

Secret pay practices often lead to greater pay dissatisfaction among employees because of the lack of transparency. Employees may perceive unfairness or feel uncertain about how their pay compares to that of their peers, leading to dissatisfaction.

The Practice of Secret Pay in a Compensation System Generally