Which of the following is true with regard to pay grading?
A) Once the levels are developed, each job is assigned the same pay grade.
B) When employees receive minimal raises, they move to a higher pay grade.
C) This method is most appropriate when an organization seeks to hire the best talent.
D) The system ensures fairness and leaves little room for discrimination in pay.
E) Everyone performing the same job is not rewarded equally in this system.

Question

Quizplus · Accepted Answer

Pay grading helps to establish a fair and consistent system of pay based on predetermined criteria such as skills, experience, and responsibilities. By providing clear criteria for pay, it leaves little room for subjective decision making and potential discrimination. However, it does not necessarily result in everyone performing the same job being rewarded equally, as individual performance and merit may also be considered in determining pay within a pay grade. Option A is incorrect as jobs may be assigned to different pay grades based on the criteria. Option B is incorrect as minimal raises may not necessarily result in an employee moving to a higher pay grade. Option C is incorrect as the appropriateness of pay grading as a method depends on various factors beyond talent acquisition, such as the organization's objectives, culture, and external market conditions.

Which of the Following Is True with Regard to Pay