All the Following Are True About Skill-Based Pay Systems EXCEPT

question 62

Multiple Choice

All the following are true about skill-based pay systems EXCEPT:

• A) it adds to labor costs because employees are paid more.
• B) it may lead to equity perceptions because skilled employees are paid more.
• C) it is not cost-effective if the organization cannot make use of skilled employees.
• D) it creates a problem when one employee has more skills than another.

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Definitions:

Ethical Climate

A work environment's set of moral values, practices, and beliefs that guide behavior and decisions within an organization.

Whistleblower

An employee who discloses organizational wrongdoing to parties who can take action.

Virtuous Circle

The idea that corporate social performance and corporate financial performance feed and reinforce each other.

Corporate Profits

The surplus income of a company after all expenses have been deducted from revenues, indicating the financial health and earning power of the business.