Which of the Following Statements Is True Regarding a Merit-Based

question 41

Multiple Choice

Which of the following statements is true regarding a merit-based pay plan?

• A) It bases pay levels on how many skills employees have or how many jobs they can do.
• B) It is also called competency-based pay plan.
• C) Unions typically resist merit-based pay plan.
• D) It distributes compensation based on established formula designed around a company's profitability.
• E) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.

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Definitions:

Skill Level

A classification of workers based on their expertise, competencies, and abilities in their job functions.

Staffing Policies

encompass the rules, guidelines, and practices that an organization follows in hiring, training, and managing its employees, often reflecting its strategic objectives and culture.

Employment Stability

The security associated with a job, where the risk of unemployment is low, leading to long-term employment relations.

Ethical Implications

The consideration of how actions, decisions, or policies affect moral principles and standards of conduct within society or an organization.