When setting up a job-based pay plan,it is most likely important for a firm to:
A) have a relatively flat management hierarchy.
B) use an external consulting firm to ensure objectivity.
C) differentiate among depth, horizontal, and vertical skills.
D) establish a way for employees to improve pay without moving into management.

Question

Quizplus · Accepted Answer

It is important for a firm to establish a way for employees to improve their pay without necessarily moving into management when setting up a job-based pay plan. This helps to create a sense of career progression and employee motivation, as well as prevent a situation where all high-paying jobs are reserved for managers. A flat management hierarchy (A) may not be necessary, and external consulting firms (B) may not always be needed if the firm has expertise in-house. While it is necessary to differentiate among depth, horizontal, and vertical skills (C), this is not the most critical factor when setting up a job-based pay plan.

When Setting Up a Job-Based Pay Plan,it Is Most Likely