At Ludlow Engineering, traditionally the employees receive a lavish Christmas luncheon catered by one of the best restaurants in town complete with a choir singing Christmas tunes. This year, the party was not scheduled, and each employee received a ham. Many employees were shocked and unhappy. Which of the following is the compensation philosophy that Ludlow Engineering is clearly moving away from?
A)performance
B)entitlement
C)third quartile
D)merit-based

Question

Quizplus · Accepted Answer

The scenario suggests that Ludlow Engineering is moving away from an entitlement compensation philosophy, where employees are given rewards and benefits simply because they have been employed for a certain period of time or because it has been a company tradition. Instead, the company is possibly focusing on other types of compensation, such as performance-based or merit-based.

At Ludlow Engineering, Traditionally the Employees Receive a Lavish Christmas