In the Context of Pay-Structure Decisions, Which of the Following

question 129

Multiple Choice

In the context of pay-structure decisions, which of the following is a difference between hierarchical pay structures and compressed pay structures?

• A) Unlike hierarchical pay structures, in compressed pay structures, there are big differences from one pay level to another.
• B) Unlike hierarchical pay structures, the basic idea behind compressed pay structures is that large differences in pay between jobs should motivate people to work harder to obtain those higher-paying jobs.
• C) Unlike hierarchical pay structures, in compressed pay structures, pay is more dispersed and varied across jobs in a company.
• D) Unlike hierarchical pay structures, the basic idea behind compressed pay structures is that similar pay levels should lead to higher levels of cooperation and better group and team performance.

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Definitions:

CFO

Chief Financial Officer; a senior executive responsible for managing the financial actions of a company.

Operating Costs

Expenses associated with the day-to-day operations of a business, including costs of goods sold (COGS) and operating expenses (OPEX).

Controlling

The process of monitoring business performance by comparing actual results with expected outcomes to make necessary adjustments.

Choosing Goals

The process of identifying objectives or desired outcomes that guide decision-making and strategic planning in personal or organizational contexts.