Senior Management in Your Organization Wants You to Explain to the Board

Multiple Choice

Senior management in your organization wants you to explain to the board of directors the key concept that makes compensation systems work. It would be correct to tell them that the ideal compensation system must

A) keep labor costs as low as possible.
B) provide for employee needs while keeping labor costs within reasonable limits.
C) pay the highest wages in the industry.
D) encourage employees to work for as little as possible to keep company profits as high as possible.
E) focus attention on benefits rather than on salaries, which are kept low on purpose.