Question

which of the following statements is true about employee participation in compensation decision making? a) it is against law to involve an employee in a task force charged with designing a pay program b) managers arw never affected by the pay level policies implemented c) it is not necessary for line managers to get involved in changing the existing pay practices in a company d) an employee may be asked to explain the rational behind a recommendation he has given in the decision making e) employee participation in pay level decision is common in many

Answer 1

Answer: d; an employee may be asked to explain the rationale behind a recommendation he has given in the decision making.

Explanation: Employee participation in compensation decision making can be done in different ways. One of them is where an employee may serve in a task force charged with designing a pay program. Hence the first statement is wrong. Managers are affected by the pay level policies implemented because the policies may affect employee motivation and work performance. Hence option b is also wrong. The line managers should be involved in changing the existing pay practices in a company because they know the employees better and hence option c is wrong. Employee participation in pay level decisions is not common because usually, management decides the pay for the employees without any employee participation. Hence option e is also wrong. But it is true that while providing pay recommendations as part of employee participation in compensation, an employee may be asked to explain the rationale behind a recommendation he has given in the decision making. Hence option d is correct.