Human Resource Managers at Tri Max,Inc

question 183

Multiple Choice

Human resource managers at Tri Max,Inc.want to encourage teamwork and are looking for a better way to compensate members of teams.One approach they are considering is a skill-based system.Which of the following statements about this type of pay system is most accurate?

• A)Skill-based systems are unlikely to work with teams because they are designed to encourage individual initiative rather than teamwork.
• B)A skill-based system is a very effective way to pay teams because this approach makes it easy to correlate skill acquisition with the bottom-line gains of the company.
• C)A skill-based pay system works well in many cases,but employees tend to resist this approach since it affects only bonuses,which are not guaranteed,rather than base pay.
• D)Skill-based pay is a common way to compensate teams,but it is also a complex type of pay system.

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Definitions:

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Contractual Arrangement

An agreement between entities to do or not do specific things, legally binding and enforceable.

Forward Integration

A business strategy where a company gains ownership or increased control over its distributors or retailers.

Apple

A leading technology company known for its innovation in consumer electronics, software, and services.