Question

Denise’s organization is becoming less hierarchical every day. She is decentralizing authority, and her employees find that their work is most often ambiguous and requires them to use a great deal of judgement. Which of the following is an individual pay plan that is well suited for this environment?

Answer 1

Answer:

Skill-Based Pay

Explanation:

                 Denise is running an organisation and she has many skilled employees working under her.

                 Denise has adopted new technique and policies to run her organisation. She is trying to decentralize the authority of her employees and the organization is becoming less hierarchical day by day.

                Thus her employees finds the work more ambiguous and they are responsible for more than one work or department. They are given work from all aspects. Thus her employees have to be multi skilled and takes up work based on their skills.

               Joe also opted a payment technique where she pays her employees according to their skill sets and not based on their designations.

Thus the pay plan that is well suited for this environment is Skill-Based Pay.