Which of the Following Statements Is True of Skill- and Knowledge-Based

question 61

Multiple Choice

Which of the following statements is true of skill- and knowledge-based pay systems?

• A) They reward employees for increased performance.
• B) They reward employees for increasing their capacity to perform well in the future.
• C) They are based on an organization's present needs.
• D) They are traditional group incentive systems that focus on short-term goals.

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Definitions:

Belief Perseverance

The psychological phenomenon where individuals maintain their convictions even when confronted with contrary evidence, showcasing the difficulty of changing deeply held beliefs.

Framing Effect

The cognitive bias where people's decisions are influenced by the way information is presented, rather than just the information itself.

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how well something matches or represents a particular prototype.

Overconfidence

The tendency to be more confident in one's own abilities or outcomes than is objectively justified.