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 an 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.

Question

Quizplus · Accepted Answer

C)A merit-based pay plan pays for individual performance based on performance appraisal ratings.Unions typically resist merit pay plans.A pure piece-rate pay plan provides no base salary and pays the employee only for what he or she produces.

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