You have been tasked with providing senior management with a plan to evaluate the effectiveness of a new compensation system to be launched by an organization. Which of the following is NOT a typical approach associated with evaluating the impact of a compensation system?
A) impact on a company's return on equity
B) impact on compensation objectives
C) impact on compensation costs
D) impact on employees' attitudes and behaviours

Question

Quizplus · Accepted Answer

Impact on a company's return on equity is not typically used as a measure for evaluating the effectiveness of a compensation system. Rather, focus is typically placed on factors such as the impact on compensation objectives, costs, and employees' attitudes and behaviors.

You Have Been Tasked with Providing Senior Management with a Plan