Refer to the scenario below to answer the following questions.
Human Resource Planning (Scenario)
Steven is hired to manage the human resources department of a local manufacturing company. Unfortunately, the company has a reputation among workers of being the firm "where you work until you find your next job." Employee turnover is high and morale is low. Steven is determined to change the situation by turning the organization's human resources into a competitive advantage and a source of pride for the firm.
-To improve the company's compensation system, Steven recommends a(n) __________ pay system that rewards employees for competencies they can demonstrate, rather than basing pay on job titles.
A) knowledge-based
B) merit-based
C) function-based
D) skills-based
E) quota-based

Question

Quizplus · Accepted Answer

A skills-based pay system rewards employees for the specific skills and competencies they can demonstrate, rather than just their job title or seniority. This can help motivate employees to develop new skills and increase their job performance, leading to higher job satisfaction and reduced turnover. Merit-based pay may also be a good option, but a skills-based system is more focused on rewarding tangible skills rather than subjective evaluations of performance.

Refer to the Scenario Below to Answer the Following Questions