Question

Which of the following is a drawback of setting pay rates based strictly on a pay policy line?A. It increases the administrative burden of managing the compensation system.B. Employees have difficulty interpreting regression analysis.C. The estimated pay for a job may not reflect conditions in the labor market.D. It increases the costs of surveying the market.E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

Answer 1

Answer:

The correct answer is (C)

Explanation:

Pay policy line arrangement is a significant part of an organisation's general aggressive technique. Similarly as associations contend to sell their items and administrations, they additionally rival each other for skilled workers. Toward that end, a focused compensation arrangement is the foundation of an association's human capital speculation methodology. The only drawback of pay policy line is 'The estimated pay for a job may not reflect conditions in the labour market'.