Human Resource Planning (Scenario)
Steven is hired to manage the human resources department of a local manufacturing company. Unfortunately, the company has a reputation among workers of being the firm "where you work until you find your next job." Employee turnover is high and morale is low. Steven is determined to change the situation by turning the organization's human resources into a competitive advantage and a source of pride for the firm.
-To improve the company's compensation system,Steven recommends a ________ pay system that rewards employees for competencies they can demonstrate,rather than basing pay on job titles.
A)knowledge-based
B)merit-based
C)function-based
D)skills-based

Question

Quizplus · Accepted Answer

A skills-based pay system rewards employees for the skills they possess rather than their job titles or positions. This system recognizes and rewards employees for their mastery of skills, which can motivate them to develop new skills and enhance their job performance. It is particularly effective when the company has a diverse workforce with a wide range of skill sets. Therefore, D is the best option for improving the company's compensation system.