Additional Case 10.1

question 23

Multiple Choice

Additional Case 10.1
Brighton Manufacturing is reviewing its compensation system. The CEO wants employees to be paid wages and benefits comparable to Brighton's competitors. He wants a system that allows for maximum flexibility in reassigning workers to different jobs without requiring compensation adjustments each time. The Finance VP suggests that the company link compensation costs more closely to productivity and profit. When profits are down, compensation costs should be reduced as well. The Finance VP also believes that employees should be paid for what they produce, not for their time, and the compensation program should apply to all employees equally. The VP of HR suggests that the key to the company's success is their employees and advocates an individual-based compensation plan. People should be paid for their skills or knowledge, not just because they are fulfilling certain jobs. The VP of HR also feels that it would be simpler to implement a compensation system by level rather than by job.
-Refer to Additional Case 10.1.The Finance VP would most likely favor a(n) :

Definitions:

Extraction Cost

Extraction cost is the expense associated with removing raw materials or natural resources from the Earth, factoring in labor, energy, and technology requirements.

ITQs

Individual Transferable Quotas; regulatory tools used in fisheries management to control the total amount of fish that can be caught by allocating specific allowances to fishermen or companies.

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and high commercial value.