All of the Following Are Methods Firms Are Using to Establish

question 81

Multiple Choice

All of the following are methods firms are using to establish closer connections between individual performance and pay except which of the following?

• A) Pay increases linked to the acquisition of new knowledge, skills, and/or demonstrated competencies
• B) Compensating managers based on their ability to mentor new group members and resolve difficult intergroup relationships
• C) Linking pay increases for all employees to a specified percentage increase in productivity
• D) Sales commissions that include follow-up customer satisfaction ratings
• E) Linking the pay of key employees to the accomplishment of new strategic initiatives

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Definitions:

Management and Labor

The two key groups in a workplace, where management is responsible for making decisions and directing operations, and labor refers to the workforce that executes tasks under management's direction.

Chain of Command

A hierarchical structure within an organization to ensure orders and decisions are effectively communicated from top leadership to every employee level.

Hierarchy of Authority

An organizational structure in which authority and responsibility are clearly defined and arranged in a graded series from top level to lower levels.

Interacting Subsystems

Components within a larger system that affect each other's functioning through their interconnection and flow of information.