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24 February, 06:56

Mark and Steve work as crane operators in a construction company called Asai Corp. Asai uses a skill-based plan that establishes single flat rates for each skill level. Mark performs better than Steve even though Steve has more seniority. Which of the following statements is most likely to be true in this scenario? Steve will be paid more than Mark as he has more seniority. Steve will be given more incentives than Mark.

Both Mark and Steve will be paid the same amount.

Mark will be paid more than Steve as his performance is higher.

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  1. 24 February, 08:17
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    Both Mark and Steve will be paid the same amount.

    Explanation:

    According to a skill-based plan, each skill level is paid equally regardless of the job the employee is performing and his seniority. Here, although Mark is a better performer than Steve, and Steve is senior to Mark, but both are designated at the same job level. Therefore, as the company follows the skills-based plan that is based on establishing single flat rates for each skill level, both Mark and Steve will be paid the same amount.
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