Decisions About How to Design Pay Systems Should Follow a Careful

question 41

Multiple Choice

Decisions about how to design pay systems should follow a careful consideration of all of the possible consequences associated with alternative forms of pay.Which of the following is the most important reason for introducing performance-based pay?

• A)to reward top management
• B)to keep up with competitors
• C)to motivate employees
• D)to help achieve their strategic objectives
• E)to integrate the pay system with the organizational mission

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Definitions:

Analytical Competency

The ability to analyze complex information, identify patterns, solve problems, and make decisions based on sound reasoning and available data.

Value-clarifying Competency

The capability to effectively identify, articulate, and apply personal or organizational values in decision-making processes.

Political Competency

The knowledge, abilities, and skills required to effectively participate in and influence the political process.

Interactional Competency

The ability to effectively communicate and interact with others, recognizing and adapting to social cues and norms.