A Problem with the Hay System of Compensating Workers Is

question 221

Multiple Choice

A problem with the Hay system of compensating workers is that:

• A)it can lead to resentment because more productive employees may earn less than employees who do not perform as well but have worked for the company longer.
• B)it is difficult and expensive to administer because of the extensive paperwork needed to compute wages and salaries each pay period.
• C)the EEOC has declared it illegal because it discriminates against older workers.
• D)because it is relatively new,most workers and managers are unfamiliar with it.

---

Definitions:

Piagetian Theory

A theory of cognitive development that describes how children construct a mental model of the world around them in distinct stages of cognitive development.

Social Experiences

Interactions with others and the environment that contribute to the development of an individual's beliefs, attitudes, and behaviors.

Habituation-Dishabituation

The process by which an organism decreases or stops its response to a repetitive stimulus (habituation) and then increases its response again when the stimulus changes or is new (dishabituation).

Cognitive Abilities

The mental skills that involve the ability to reason, plan, solve problems, think abstractly, and learn.