As a Human Resource Consultant, You Have Been Asked to Provide

Multiple Choice

As a human resource consultant, you have been asked to provide some rationale why an organization may decide to use base pay as a cornerstone for a compensation scheme. Which of the following notions would you advance in supporting your argument?

A) It provides an organization with more labour flexibility in the allocation of tasks.
B) It guarantees employee performance and aligns salaries to performance.
C) It is the most popular; hence, the organization should use it.
D) Unions are most likely to agree with management's approach, given this scheme encourages individual performance.