Why was the suggestion to reduce Gregory's pay denied?

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

The decision to deny the suggestion to reduce Gregory's pay is based on the internal policy that prohibits pay reductions for salaried employees. Many organizations establish clear compensation policies to ensure consistency and fairness in employee treatment. Such policies often outline the terms of salary adjustments, including restrictions on reducing pay for employees who are classified as salaried. This helps to maintain morale and trust within the workforce. By adhering to this internal policy, the organization ensures that all employees are treated equally and fairly, and it reduces the risk of legal repercussions or employee dissatisfaction that could arise from arbitrary pay cuts.

In the context of employment contracts or agreements, while they could also play a role in salary adjustments, the straightforward application of an internal policy is often a fundamental reason that governs such decisions.

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