The stockholders are concerned about the cost of perquisites.Management wants maximum flexibility to move people among jobs without having to adjust their compensation.Management also wants more joint-task accomplishment and better cooperation among employees.A(n)________ compensation system will reinforce all these goals.
A) elitist
B) variable
C) egalitarian
D) job-centered

Question

Quizplus · Accepted Answer

An egalitarian compensation system is based on the philosophy of equal pay for equal work, which means compensation is determined based on job responsibilities and skill requirements rather than individual performance or seniority. This type of system aligns with the stockholders' concern about the cost of perquisites and allows management to move people among jobs without having to adjust compensation since pay is determined by the job, not the individual. Additionally, an egalitarian system promotes more joint-task accomplishment and better cooperation among employees as everyone is compensated equally based on their job responsibilities, which can help to reduce competition and encourage teamwork.

The Stockholders Are Concerned About the Cost of Perquisites