Surveys that directly ask employees how important pay is to them are likely to overestimate pay's True importance in actual decisions.

Surveys that directly ask employees how important pay is to them are likely to overestimate pay's True importance in actual decisions.

Answer: False.

Most employees prefer variable pay systems (e.g., incentive schemes, gain sharing, stock options) to fixed pay systems.

Most employees prefer variable pay systems (e.g., incentive schemes, gain sharing, stock options) to fixed pay systems.

Answer: False.

Talking about salary issues during performance appraisals tends to hurt morale and future performance.

Talking about salary issues during performance appraisals tends to hurt morale and future performance.

Answer: False.

New companies have a better chance of surviving if all employees receive incentives based on organization-wide performance.

New companies have a better chance of surviving if all employees receive incentives based on organization-wide performance.

Answer: True.