Of the Following, Which Is an Advantage of Competency-Based Pay

question 3

Multiple Choice

Of the following, which is an advantage of competency-based pay?

• A) Competency-based pay systems promote less flexibility in employees.
• B) Individuals who get the opportunity to use their multi-faceted skill set often develop accurate perspectives on organizational problems and challenges.
• C) This pay system leads to less committed employees.
• D) An organization with a competency-based pay system must invest a large amount of company money in training and evaluating employees.

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Definitions:

Supply

The total amount of a good or service available for purchase by consumers at a given price level and time.

Equilibrium Quantity

The quantity of a good or service at which the quantity demanded equals the quantity supplied at the market price.

Demand

The consumer's desire and willingness to pay for a product or service at a specific price.

Supply

The total amount of a good or service that is available for purchase at any given price point.