A compensation system that assumes that employees should be compensated based upon their abilities,potential,and flexibility to perform multiple tasks is a(n)________ compensation system.
A) traditional-oriented
B) knowledge-based
C) equity-based
D) job-centered

Question

Quizplus · Accepted Answer

A knowledge-based compensation system is focused on compensating employees based on their skills, abilities, and potential. This approach emphasizes the value of employees' knowledge and their ability to adapt to changing responsibilities and job requirements. It is therefore a more flexible system, unlike traditional-oriented or job-centered compensation systems that focus more on job titles or specific duties. The equity-based compensation system, on the other hand, emphasizes fairness and parity among employees within the organization.

A Compensation System That Assumes That Employees Should Be Compensated