Bill Runs a Small Business and Is in the Process

question 16

Multiple Choice

Bill runs a small business and is in the process of revising out his company's compensation plan.After researching the market and determining the salary range,Bill starts to plan how much of an increase in pay he can offer each employee subsequently.In the context of increasing pay,which of the following is the most appropriate course for Bill to follow?

• A) Bill should determine this based on an employee's performance,value,and contribution to the small business.
• B) Bill should check salary surveys and want ads.
• C) Bill should pay the amount needed for a person or family of a particular size to meet the basic necessities of life as an increase.
• D) Bill should take no more than 3 percent of the annual personnel budget and allocate it to pay increment.

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Definitions:

Organizational Pyramid

A hierarchical structure within an organization that illustrates the arrangement of its management and employees.

Goals And Objectives

Goals and objectives are specific, measurable aims that guide the actions and decisions of individuals or organizations towards achieving desired outcomes.

Immediate Goal

An objective or target that is intended to be achieved in the very near future, serving as a stepping stone towards longer-term aspirations.

Vision

An aspirational description of what an individual, company, or society aims to achieve or become in the future.