Skill-Based Pay Plans

question 73

Multiple Choice

Skill-based pay plans:

• A)discourage employees from learning new jobs.
• B)create a psychological distance between employees and managers.
• C)discourage poor performers from leaving the organization.
• D)can be expensive because they motivate employees to spend more time learning new jobs.
• E)All of the answers are correct.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold.

Gross Profit

The financial gain made after subtracting the cost of goods sold from revenue, indicating the efficiency of a company in managing its production and labor costs.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an identified portion of such an asset or liability that is attributable to a particular risk.

Cash Flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecast transaction.