Advocates of Competency-Based Pay Assert That the System Encourages Employees

question 104

True/False

Advocates of competency-based pay assert that the system encourages employees to develop the knowledge, skills, and behaviors a firm needs to achieve its strategic goals.

---

Definitions:

Automatic Stabilizers

Economic measures and initiatives, like taxation and unemployment insurance, that naturally adapt to mitigate the effects of economic changes without direct action from the government.

Discretionary Fiscal Policy

Changes in government spending and taxes to promote full employment, price stability, and economic growth.

Fiscal Policy

Governmental use of spending and taxation to influence the economy.

Government Spending

Expenditures by the government for its operations, programs, and debt payments, which can influence the economy's overall performance.