Question

according to the textbook, what is a key argument about compensation systems in canada? question 20select one: a. there is one best compensation system that can be applied to organizations. b. organizations should keep wages low. c. an equitable compensation system offers a competitive advantage for organizations. d. compensation systems are more important than all other management systems in organizations.

Answer 1

According to the textbook, an equitable compensation system offers a competitive advantage for organizations in Canada.

Step-by-step explanation:

The key argument about compensation systems in Canada, according to the textbook, is that an equitable compensation system offers a competitive advantage for organizations.

One reason for this is the efficiency wage theory. According to this theory, workers' productivity depends on their pay, and employers may find it worthwhile to pay their employees somewhat more than market conditions dictate. This is because employees who receive better pay will be more motivated to work harder and stay with the company, minimizing hiring and training costs for the employer.

Therefore, an equitable compensation system that aligns pay with effort and costs, as well as recognizes the value of skilled employees, can contribute to the overall success and competitiveness of organizations in Canada.