Which of the Following Is a Disadvantage of the Pay

question 62

Multiple Choice

Which of the following is a disadvantage of the pay grade approach?

• A)The administrative burden of setting separate rates of pay for numerous employees is increased.
• B)It is inflexible when it comes to moving employees from job to job.
• C)Demotions are not well received in a pay grade system when compared to a job-based system.
• D)It might give rise to some jobs being underpaid and some being overpaid.
• E)It does not recognize that performance difference in the higher levels has much impact on the organization.

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle that allows for tax-deferred savings towards retirement.

Contributions

Money that individuals or entities provide towards a common pool or fund, often for purposes like retirement savings plans or investment funds.

Ordinary Annuity

Equivalent monetary exchanges concluded after each sequential era over a predetermined course.

Compounded Monthly

A method of calculating interest where the accumulated interest is added to the principal sum each month.