Question: on Average Performance Rating (15) Average Merit Increase (5% of budget) (%) Grade Inflation (%) Compa Ratio (%) Annual Incentive (% of Target) Finance 3.5
| on | Average Performance Rating (15) | Average Merit Increase (5% of budget) (%) | Grade Inflation (%) | Compa Ratio (%) | Annual Incentive (% of Target) |
|---|---|---|---|---|---|
| Finance | 3.5 | 6.8 | 11 | 120 | 85 |
| Operations | 4.1 | 5.0 | 6 | 95 | 103 |
| Marketing | 4.9 | 2.7 | 1.9 | 70 | 110 |
You are the director of compensation at a major pharmaceutical company. As part of the strategy of your unit, you developed a compensation scorecard. The results are shown in the summary table. Based on this information, what can you conclude about the operations function?
OPTIONS ARE
A. The operations function is grossly underpaying its employees.
B. The operations department is overstaffed.
C. The compa ratio suggests that operations employee salaries are excessively high.
D. The average merit increase for operations employees is within the amount budgeted.
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