Steve Recommends That Employees Should Be Compensated According to Their

Multiple Choice

Steve recommends that employees should be compensated according to their competencies, rather than their designations. Employees should be financially rewarded when they gain more knowledge and learn new processes that are relevant to the job, even if the employee is at a lower level. This implies that Steve favors a ________.

A) variable pay system
B) fixed pay system
C) profit-based pay system
D) skill-based pay system