The rationale for adopting seniority pay plans is described by which theory?
A) job-based theory
B) pay-for-performance theory
C) human capital theory
D) equity theory

Question

Quizplus · Accepted Answer

C)These pay plans assume that employees become more valuable to companies with time and that valued employees will leave if they do not have a clear idea that their salaries will progress over time.This rationale comes from human capital theory,which states that employees' knowledge and skills generate productive capital known as human capital.Employees can develop such knowledge and skills from formal education and training,including on-the-job experience.Over time,employees presumably refine existing skills or acquire new ones that enable them to work more productively.

The Rationale for Adopting Seniority Pay Plans Is Described by Which