Scenario 9.1 Denton and Denton Inc. (D&D Inc.) Is a Small Graphic

question 11

Multiple Choice

Scenario 9.1
Denton and Denton Inc. (D&D Inc.) is a small graphic design firm that designs tray liners for various small food chains across Canada and a major chain in the United States. D&D currently has 20 employees who are paid hourly rates for time worked, not projects completed. These workers consider themselves valuable, knowledge-based workers, and now that the company is expanding its client base they are not happy with the current pay structure. Management claims that this pay structure, ranging from $20 to $65 per hour, is based on collapsing the pay ranges for four job bands.
-Refer to Scenario 9.1. Given that these employees are skilled-based/knowledge workers, which of the following is a more effective way to compensate them?

• A) piece rate pay system
• B) hourly rate based on task completed
• C) salaried employee system
• D) competency-based pay system

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Definitions:

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as wages, rent, and utilities.

Alternative Sources

Different or non-traditional means or options available for achieving a specific goal, typically referring to energy, materials, or information.

Petroleum

A natural, flammable liquid found beneath the Earth's surface that is refined into fuel and various chemical products.

Run Out Of Oil

A hypothetical scenario in which the world's reserves of petroleum are depleted, leading to potential energy crises.