Which statement best describes current compensation practices and expectations related to the key criteria for evaluating the success of a compensation system?

A) It is realistic to expect that a reward system will achieve all eight of the effectiveness criteria.
B) Continuing evaluation of the effectiveness of the reward and compensation system is crucial for most organizations.
C) Successful organizations all have equitable reward systems.
D) Most firms have found the right answers to the compensation puzzle.

Question

Abigail S Tshabalala · Accepted Answer

Final Answer : B, Explanation :  Continuing evaluation of the effectiveness of the reward and compensation system is crucial for most organizations. While it is not realistic to expect a reward system to achieve all eight criteria perfectly, organizations should continually reassess their compensation practices to ensure they are meeting the needs of employees and the company. This involves considering factors such as fairness, alignment with business objectives, motivation of high performance, and competitive with the market.

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