Salary adjustments can be categorized into which of the following types?

Salary adjustments can be categorized into which of the following types?

• A. Bonus and overtime
• B. Promotion and merit
• C. Commission and base salary
• D. Signing bonuses and stock options

Answer: (B)

Salary adjustments can primarily be categorized into promotion and merit because these adjustments are directly related to an employee's performance and career progression within the organization. A promotion typically involves an increased salary due to a higher-level position or greater responsibilities, whereas a merit increase rewards an employee's performance based on evaluations or achievements. These types of adjustments are foundational in compensation management as they encourage employee development and retention by aligning salary increases with individual contributions and growth within the company. In contrast, the other options present forms of compensation that do not distinctly categorize salary adjustments in the same way. Bonus and overtime focuses on additional pay for specific circumstances rather than systematic salary adjustments. Commission and base salary profiles different elements of earnings, with commissions being performance-based rather than adjustments to the salary structure. Signing bonuses and stock options are incentives given typically at the hiring stage or as part of long-term incentive plans but do not reflect ongoing salary adjustments that relate to an employee's position or performance over time.

Salary adjustments can primarily be categorized into promotion and merit because these adjustments are directly related to an employee's performance and career progression within the organization. A promotion typically involves an increased salary due to a higher-level position or greater responsibilities, whereas a merit increase rewards an employee's performance based on evaluations or achievements. These types of adjustments are foundational in compensation management as they encourage employee development and retention by aligning salary increases with individual contributions and growth within the company.

In contrast, the other options present forms of compensation that do not distinctly categorize salary adjustments in the same way. Bonus and overtime focuses on additional pay for specific circumstances rather than systematic salary adjustments. Commission and base salary profiles different elements of earnings, with commissions being performance-based rather than adjustments to the salary structure. Signing bonuses and stock options are incentives given typically at the hiring stage or as part of long-term incentive plans but do not reflect ongoing salary adjustments that relate to an employee's position or performance over time.