105) The ________ method utilizes feedback from supervisors, employees, and coworkers.
A) multiperson comparison
B) 360-degree appraisal
C) critical incident
D) graphic rating scale
106) A ________ system rewards employees for the job competencies they demonstrate.
A) piece-rate pay
B) skill-based pay
C) variable pay
D) performance-based pay
107) Steve recommends that employees should be compensated according to their competencies,
rather than their designations. Employees should be financially rewarded when they gain more
knowledge and learn new processes that are relevant to the job, even if the employee is at a
lower level. This implies that Steve favors a ________.
A) variable pay system
B) fixed pay system
C) profit-based pay system
D) skill-based pay system
108) After 75 years in business, ABC Corp. has decided it is time to overhaul its compensation
system. What advice would you offer its HR manager?
A) Make it more flexible and reduce the number of pay levels.
B) Pay everyone in the same pay grade the same wage regardless of seniority.
C) Focus on benefits rather than wages or salaries.
D) Make pay a function of the amount of education the employee has.