The employees at LennoCorp are meeting or exceeding their goals, and consistently get positive reviews. However, competition has forced down prices on the goods LennoCorp produces, thereby reducing the firm's income. In this situation, pay levels may be limited by
A)the employer's ability to pay.
B)the employees' relative worth.
C)the employees' motivation.
D)the worth of the job.

Question

Quizplus · Accepted Answer

The employer's ability to pay is directly influenced by the firm's income. If competition has reduced the income of LennoCorp, it may limit the company's ability to offer higher pay, regardless of employee performance or the worth of their jobs.

The Employees at LennoCorp Are Meeting or Exceeding Their Goals