The management of an organization realized that their employees' performance kept deteriorating and many employees decided to quit due to unknown reasons. After probing, they realized that their competitors were offering a better compensation which attracted most of the employees. Therefore, the management made reasonable changes to the compensation system that enabled good performers to receive more incentives and recognition. Identify the change that has been implemented.

Question

Quizplus · Accepted Answer

The change implemented in this scenario is reactive because it is a response to a problem (employees quitting) that has already occurred. The management did not proactively initiate the change to improve performance, but instead reacted to the competition's better compensation.

The Management of an Organization Realized That Their Employees' Performance