Which of the following is a disadvantage of job-based pay?
A) It rarely offers employees any incentives such as bonuses or profit-sharing plans.
B) It reinforces an emphasis on organizational hierarchy and centralized decision making.
C) Employees with lower skill levels receive higher pay than employees with higher skill levels.
D) It is better suited for small organizations rather than large corporations.
E) All of these

Question

Quizplus · Accepted Answer

Job-based pay reinforces an emphasis on organizational hierarchy and centralized decision making, which can limit employee autonomy and creativity. The other options, such as lack of incentives and unequal pay for different skill levels, are also disadvantages but are not true of all job-based pay systems. For example, some job-based pay systems offer bonuses or profit-sharing plans, and pay can be adjusted based on skill level or experience. Therefore, option B is the best choice because it is a core aspect of job-based pay that can be difficult to overcome.

Which of the Following Is a Disadvantage of Job-Based Pay