Human Resource Managers at Tri Max, Inc

question 74

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) Team members have base salaries, but they are additionally compensated according to the number of new skills they acquire as a team.

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Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving the deployment of resources in a competitive context.

Structure

The arrangement or organization of interrelated elements in a material object or system, or the organization of parts as dominated by the general character of the whole.

Bureaucratic

Relating to a system of government or organization that is managed by departments staffed with non-elected officials, often criticized for excessive procedural complexity.

Adapting

The process of making adjustments or changes in behavior, strategy, or operations in response to external conditions or challenges.