As a Human Resource Consultant,you Have Been Asked to Provide

question 41

Multiple Choice

As a human resource consultant,you have been asked to provide some rationale on why an organization may decide to use base pay as a cornerstone for a compensation scheme.Which of the following should you advance in supporting your argument?

• A) It provides an organization with more labour flexibility in the allocation of tasks.
• B) It guarantees employee performance and aligns salaries to performance.
• C) It encourages team work.
• D) Unions are most likely to agree with management's approach,given this scheme encourages individual performance.

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Definitions:

Moral Hazard

A situation where one party engages in risky behavior or fails to act in good faith because another party bears the consequences or costs.

Auto Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.

Fundamental Analysis

A method of evaluating a security by attempting to measure its intrinsic value through examining related economic, financial, and other qualitative and quantitative factors.