Linear pay structures are those that award additional earnings evenly according to every unit of productivity or widget produced, while non-linear pay structures award additional earnings in very uneven fashion based on job categories that are ranked. Which of the following statements is false?
A) The non-linear pay systems occasionally generate disincentives for good performance.
B) The non-linear pay systems are thought to stimulate good performance.
C) The non-linear pay systems can generate non-cooperative behaviour.
D) The non-linear compensation systems tends to generate relatively egalitarian pay structures.

Question

Quizplus · Accepted Answer

Non-linear compensation systems, by definition, create uneven pay structures based on job categories and performance, which is the opposite of generating egalitarian (equal) pay structures. Linear pay structures are more likely to result in egalitarian outcomes.

Linear Pay Structures Are Those That Award Additional Earnings Evenly