Which of the following is a disadvantage of a pay structure that rewards employees for
winning promotions?
A. It does not focus on setting pay for groups of jobs.
B. It does not make adjustments to a pay rate to reflect differences in labor markets.
C. It discourages employees from gaining valuable experience through lateral career
moves.
D. It rewards employees for acquiring skills but does not provide a way to ensure that
employees can use their new skills.
E. It places the employer at an economic disadvantage relative to other employers that
pay the market rate, by raising the pay for some jobs.
Armando, a manager at a top engineering company, believes he can hire a few
employees by promising them job security and later terminating them on different
grounds. His co-worker, Zemara, believes that this action would violate the implied
employment agreement. Which of the following statements would weaken Armando’s
belief?
A. Armando believes that desperate times call for desperate measures.
B. Armando deviates from the agreement that he had signed initially.
C. Armando compensates the terminated employees.
D. Zemara does not understand the principles of the company.
E. The company is under financial constraints and at times has to lay off employees.