The Compensatory Approach to Hiring Is Used When

question 17

Multiple Choice

The compensatory approach to hiring is used when:

• A)predictors are assumed to be independent
• B)scores for each predictor are evaluated on a pass or fail basis
• C)the applicant is hired based on what their expected compensation package (pay)would be
• D)affordability of the applicants compensation package (pay)is a predictor in the selection process
• E)performing well on one predictor can compensate for performing poorly on another

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Definitions:

Sole Proprietorships

A company that is both owned and run by one person, in which the owner and the company are legally considered the same entity.

Corporations

Legal entities established by individuals, stockholders, or shareholders, with the purpose of operating for profit.

Legal Requirements

Regulations and laws that an entity must follow in its operations, often varying by industry, region, and other factors.

Large Businesses

Companies that typically operate on a large scale with significant asset values, large number of employees, and high volume of sales and production.