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According to various scholars, it has been identified that compensation plays a role in affecting the behaviors of employees. The impact can be either positive or negative. Contributing factors can range from the employer, the employee, the goals/objectives, perceptions, attributions, and behaviors. Each plays a role in determining the outcome.

identify and address the pros and cons of compensation and its effect on employee behaviors, and then address the questions below.

  • What motivates employees?
  • Does compensation motivate behavior?
  • What are some elements of motivation?
  • Can compensation attract and retain employees?
  • What behaviors should compensation reinforce?
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