The practice of openness in a compensation system generally leads to:
A) greater pay dissatisfaction among employees.
B) increased fairness in managerial pay decisions.
C) greater overall compensation costs.
D) increased team building.

Question

Quizplus · Accepted Answer

Openness in a compensation system often leads to increased transparency and fairness in managerial pay decisions. This can result in higher job satisfaction and trust in the organization among employees. While openness may initially result in some pay dissatisfaction from those who feel they are not fairly compensated, over time it can lead to a more equitable and motivated workforce. It is also possible that greater transparency could result in increased compensation costs, but this would depend on the specifics of the system and organization. There is not necessarily a direct correlation between openness and increased team building, as this would depend on other factors such as communication and collaboration.

The Practice of Openness in a Compensation System Generally Leads