Question

Steelweld, a car parts manufacturer, pays employees a higher hourly rate as they learn to master more parts of the work process. Employees earn $10 per hour when they are hired, and they can earn up to $20 per hour if they master all 12 work units in the production process. Which of these reward systems is being applied by Steelweld?

Answer 1

Answer:

The correct answer is A. Skill-based pay.

Complete question and statement: Steelweld, a car parts manufacturer, pays employees a higher hourly rate as they learn to master more parts of the work process. Employees earn $10 per hour when they are hired and they can earn up to $20 per hour if they master all 12 work units in the production process. Which of these reward systems is being applied by Steelweld?

A. Skill-based pay

B. Piece-rate pay

C. Job evaluation system

D. Seniority-based pay

E. Membership-based pay

Source: https://www.coursehero.com/file/p6jelia/p-166-Steelweld-a-car-parts-manufacturer-pays-employees-a-higher-hourly-rate-as/

Explanation: It is perfectly clear that this car parts company is promoting the development of skills during the production process. The employee knows in advance that as he or she develops a greater number of skills, he or she will have a better pay. The formula for a better payment is disclosed.