A company called Excel Inc. has acquired another company called M&M Inc. Excel Inc. has 150 employees and M&M Inc. has 50 employees. It is decided that the seniority list will be combined according to the proportion of the number of employees in both the companies. Since the proportion is 3:1, in the first four places on the new seniority lists, the three positions ranked highest in Excel Inc. are given positions 1, 2, and 3, and the highest ranked position in M&M Inc. is given rank 4. Which of the following principles of combining seniority lists is used in this example?
A) associative rank
B) ratio-rank
C) rank maintenance
D) absolute rank

Question

Quizplus · Accepted Answer

The principle of ratio-rank is used in this example, where the seniority list is combined proportionally based on the number of employees in both companies, i.e., 3:1. The first four positions on the new seniority list are assigned based on this ratio, with the top three positions from Excel Inc. getting positions 1, 2, and 3, and the highest ranked position from M&M Inc. getting position 4.

A Company Called Excel Inc