Which of the Following Pay Structures Would a Company Adopt

question 39

Multiple Choice

Which of the following pay structures would a company adopt if it wanted a pay structure that rewards employees based on their knowledge and competency?

• A)Delayering approach
• B)Skill-based pay approach
• C)Pay grade approach
• D)Market survey data approach
• E)Pay policy line approach

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Definitions:

Water And Lemons

This may refer to the economic theory illustrating the concept of asymmetric information, where sellers have more information about the product quality than buyers, as famously exemplified in Akerlof’s “The Market for Lemons.”

Cross-Price Elasticity

A measure of how the demand for one good responds to a change in the price of another good, reflecting substitutes or complements.

Demand

The quantity of a good or service consumers are willing and able to purchase at various prices during a specified time period.

Cross-Price Elasticity

A measure of how much the quantity demanded of one good responds to a change in the price of another good.