SHRM-CP Exam Dumps | In the sales department of Fitch Company, employees know that the size of their annual bonus is tied

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Question 10/153

In the sales department of Fitch Company, employees know that the size of their annual bonus is tied to their performance. The company has published a chart indicating the relationship between sales and compensation. The employees of Fitch Company have

A. an entitlement philosophy.

B. line of sight.

C. intrinsic rewards.

D. fiduciary responsibility.

Correct Answer: B

Explanation: The employees of Fitch Company have line of sight. Line of sight exists when employees feel that their performance will determine their compensation in the future. Companies in which employees have line of sight tend to have higher levels of performance. A company with an entitlement philosophy rewards employees for seniority. Intrinsic rewards are the pleasures and satisfactions of a job well done. Businesses should seek to maximize the opportunities for creating intrinsic rewards for their employees. A fiduciary responsibility is the duty to handle someone else's affairs, typically with regard to financial matters, with appropriate care.

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