This method involves using a "what if" scenario to determine which compensation-level strategy is most efficient for your organization.
A) Cost-benefit analysis
B) Market share analysis
C) Trial analysis
D) Utility analysis

Question

Quizplus · Accepted Answer

Utility analysis involves developing a scenario or simulation to predict employee behavior based on different compensation packages, allowing you to select the most optimal strategy. Cost-benefit analysis is concerned only with the financial costs and benefits of compensation strategies, and market share analysis is focused on a company's position relative to competitors. Trial analysis involves implementing different compensation strategies and evaluating their effectiveness, which can be costly and time-consuming.

This Method Involves Using a "What If" Scenario to Determine