Use your knowledge of high-performance work systems to answer the following question.

You have been hired as an HR consultant by the senior management team at a medical systems manufacturer to help them to design and implement a high-performance work system for their production facilities in the U.S., Singapore, and Germany. At the meeting, one of the senior managers asks you what kind of compensation initiatives could be built into the system that promote knowledge development. How would you respond?

A. Use a skill-based pay plan.

B. Use a recognition system.

C. Institute cost of living adjustments.

D. Use an incentive system.