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Celeste, the Vice President of Compensation, Is Preparing a Report

Question 7

Multiple Choice

Celeste, the vice president of compensation, is preparing a report for the executive committee. She is recommending that the company move from using a traditional job evaluation system to a system using market pricing. Which argument is she LEAST likely to include in her presentation on market pricing?


A) Market pricing is less subject to internal organizational politics.
B) Market pricing is viewed by employees as having high face validity.
C) Market pricing can reduce wide fluctuations in data on which pay rates are based.
D) Market price can eliminate subjectivity of job evaluation.

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