Human Resource Managers at Tri Max, Inc

Multiple Choice

Human resource managers at Tri Max, Inc., want to encourage teamwork and are looking for a better way to compensate members of teams. One approach they are considering is a skill-based system. Which of the following statements about this type of pay system is most accurate?

A) Skill-based systems are unlikely to work with teams because they are designed to encourage individual initiative rather than teamwork.
B) A skill-based system is a very effective way to pay teams because this approach makes it easy to correlate skill acquisition with the bottom-line gains of the company.
C) A skill-based pay system works well in many cases, but employees tend to resist this approach since it affects only bonuses, which are not guaranteed, rather than base pay.
D) Team members have base salaries, but they are additionally compensated according to the number of new skills they acquire as a team.