The primary reason compensation is important to managers is because:
A) employees regard it as a reward.
B) it influences employee behavior.
C) it is a larger cost than benefits.
D) stock holders dislike high compensation costs.

Question

Quizplus · Accepted Answer

Compensation is an important factor that can influence employee behavior, motivation, and productivity. Managers need to design and implement compensation systems that align with the organization's goals and values and that attract, retain, and motivate employees. Compensation is also a significant cost for organizations, but it is not necessarily larger than benefits. Additionally, stockholders may have different perspectives and preferences regarding compensation, so their opinions should not be the primary driver of compensation decisions.

The Primary Reason Compensation Is Important to Managers Is Because