Ramon Inc a software company uses job evaluations to establi

Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company.

comparable-worth policy

minimum wage policy

average pay policy

merit pay policy

piecework rate policy

Solution

Answer: Merit pay policy

merit pay policy is also known as pay for performance policy. in this policy, there is a raise in the pay depending in the set of criterias that are set by the employers. these criterias are evaluated by the employer through the job evaluation process for a certain period of time, and then the salary is adjusted accordingly to the work done by the employee. this process is very challenging and under taken by many companies for their salary compensation.