Which of the Following Statements About Pay Equity as a Compensation

question 20

Multiple Choice

Which of the following statements about pay equity as a compensation policy is true?

• A) It is rarely used because the cost of eliminating pay inequities runs about 20 to 25% of annual payroll.
• B) Eliminating pay inequities requires cutting the pay of some white male employees.
• C) Unions are adamantly opposed to pay equity policies.
• D) If a company has adhered to external market pay levels, it has automatically adjusted for pay inequities.
• E) Employees should perceive that they are paid fairly compared to others in the same organization given the contributions that they and others make to the organization.

---

Definitions:

Organizing Skills

The abilities related to planning, arranging, and managing resources or events efficiently.

Members' Votes

The act of members of an organization or legislative body casting their vote or making a decision, often in the context of elections or policy approval.

Electoral Process

The series of procedures through which officials are selected by a vote of the people, encompassing everything from campaigning to the counting of ballots.

Democracy

A system of governance where authority is given to the citizens, who govern themselves either directly or by electing representatives democratically.