A particular company employing a human relations management strategy begins to experience significant decreases in revenue and profits. As a result, it decides to cut back on some indirect pay rewards. What do you believe will be the impact to this organization as a result of their compensation decision?
A) Employees will begin to work hard to make up for the shortfall.
B) Employees will have less trust in management, moving forward.
C) Employees will start to suggest to management ways to reduce expenses.
D) Employees will suggest to management that their management strategy should be modified to reflect a high involvement strategy.

Question

Quizplus · Accepted Answer

Cutting back on indirect pay rewards can lead to decreased employee motivation and loyalty, which can result in a lack of trust in management. This can impact employee morale and may lead to decreased productivity and engagement. Additionally, employees may seek other job opportunities with better compensation packages.

A Particular Company Employing a Human Relations Management Strategy Begins