Certified Aviation Manager (CAM) Practice Test

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Prepare for the Certified Aviation Manager Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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What type of wage and salary system is utilized when compensation is based on the skill level required in employees' positions?

Merit-based pay
Competency-based pay
Experience-based pay
Performance-based pay

The correct answer is: Competency-based pay

The correct choice is competency-based pay, which refers to a wage and salary system that emphasizes the specific skills, knowledge, and competencies that employees possess. In this approach, employees are compensated based on their ability to demonstrate particular skills relevant to their roles, rather than simply their experience or performance outcomes. This system encourages continuous professional development and aligns employee growth with the organization's needs and strategic goals. Competency-based pay is particularly effective in industries, such as aviation management, where technical expertise and specialized competencies play a critical role in operational success. By focusing on skill levels, organizations can ensure that employees are fairly compensated for their proficiency and the unique contributions they bring to their positions.