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Harris inc competes with other companies based on differentiation, presenting a unique set of IT services to its customers. In order to motivate employees to share ideas, they have a quarterly contest. the winner is the employee with the best idea based on dollars saved or dollars earned. The cash award given is:

A. direct compensation
B. indirect compensation
C. fixed compensation
D. targeted compensation

1 Answer

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Final answer:

The cash award provided by Harris Inc. for the best idea in cost savings or revenue generation is a form of direct compensation, classified as a bonus for the employee's contributory effort.

Step-by-step explanation:

In the scenario provided, Harris Inc. rewards its employees for the best idea based on cost savings or increased earnings with a quarterly contest. The cash award given to the employee for an idea that leads to financial benefits for the company would be classified as direct compensation. Direct compensation refers to the financial rewards given directly to employees in exchange for their work or contributions, and includes wages, salaries, commissions, and bonuses. In this case, the cash award as a prize for the most beneficial idea falls within the realm of a bonus, a form of direct compensation because it is a financial payout given in recognition of an employee's individual contribution to the company's financial performance.

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