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Which of the following becomes more expensive as inflation increases? Select one: a. Merit pay plans b. Cost-of-living adjust
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Answer #1

1. b. cost-of-living adjustments

Cost of living adjustments (COLA) are made in the annual compensation on a periodic basic to account for the increase in living expenses as a result of inflation. COLAs are also made in the compensation, whenever there is a transfer from one city to another, which has different cost of living.

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2. b. use objective criteria

Performance appraisals should be based on objective criteria as much as possible, instead of subjective assessment by superior in order to avoid judgemental errors resulting from biases.

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3. c. Refraining from hiring persons with arrest records

In order to control workplace violence, organization should not hire persons with arrest records, because persons who have been involved in crime once, have a higher tendency to indulge in criminal activities and violence again.

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