The CEO of Your Company Wants to Move to a Pure

Multiple Choice

The CEO of your company wants to move to a pure market pricing approach to compensating all the employees.She argues that it is foolish to pay more for any resource (including human resources) than they are worth on the open market.She argues that a pure market pricing approach would be the most efficient use of organizational funds.It is her idea to review the market price for each job in the company annually,and revise the employees' pay up or down as indicated.She knows this is an unconventional idea,but she is convinced it would work.You make all the following arguments EXCEPT

A) a pay structure based entirely on market pricing would be hard to defend in court against charges of discrimination.
B) employees' pay may fluctuate wildly from year to year.
C) it will not be possible to find pay survey data for jobs that are unique to your company.
D) for many jobs there is little pay survey data that is gathered in a methodologically-sound manner.