Refer to the Scenario Below to Answer the Following Questions

question 134

Multiple Choice

Refer to the scenario below to answer the following questions.
Human Resource Planning (Scenario)
Steven is hired to manage the human resources department of a local manufacturing company. Unfortunately, the company has a reputation among workers of being the firm "where you work until you find your next job." Employee turnover is high and morale is low. Steven is determined to change the situation by turning the organization's human resources into a competitive advantage and a source of pride for the firm.
-To improve the company's compensation system, Steven recommends a(n) __________ pay system that rewards employees for competencies they can demonstrate, rather than basing pay on job titles.

• A) knowledge-based
• B) merit-based
• C) function-based
• D) skills-based
• E) quota-based

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Definitions:

Insurance

A financial product offering protection against the potential financial loss or liability resulting from specific events or circumstances, in exchange for a premium payment.

Adverse Selection

A situation in markets where buyers or sellers have information that other participants do not, leading to an unfair advantage or market inefficiency.

Risk Aversion

a preference for certain outcomes over uncertain ones, often characterized by the avoidance of risky situations.

Expected Value

A calculated average of all possible values for a random variable, taking into account their probabilities of occurrence.