Which of the following is true of a pay adjustment matrix?
A) It reflects an employee's horizontal movement in an organization.
B) It is used to determine the compensation benchmark in a specific industry.
C) It is used to determine the compensation benchmark in a specific organization.
D) It reflects an employee's eligibility for pay increase based on merit.

Question

Quizplus · Accepted Answer

A pay adjustment matrix reflects an employee's eligibility for pay increase based on merit. It outlines the criteria for determining pay increases based on performance, skills, and experience. It is used by organizations to ensure fair and consistent compensation practices for their employees. Option A is incorrect because an employee's horizontal movement is usually captured in an organizational chart or job description, and not a pay adjustment matrix. Option B is incorrect because a compensation benchmark in a specific industry is determined by market research and industry trends, and not necessarily by a pay adjustment matrix. Option C is incorrect because a compensation benchmark in a specific organization is usually determined by factors such as the organization's budget, business strategy, and competitive position, and not necessarily by a pay adjustment matrix.

Which of the Following Is True of a Pay Adjustment