GK
HUMAN RESOURCE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following terms refers to an incentive plan that ties a group’s pay to the firm’s profitability?
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piecework
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variable pay
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pay-for-performance
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merit pay
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Explanation:
Detailed explanation-1: -18) Which of the following terms refers to an incentive plan that ties a group’s pay to the firm’s profitability? A) piecework B) variable pay C) pay-for-performance D) merit pay Answer: B Explanation: B) Traditionally, all incentive plans are pay-for-performance plans.
Detailed explanation-2: -The correct option is C) Straight piecework In a straight piecework pay system, the incentive is provided based on the produced output.
Detailed explanation-3: -Incentive pay plans are also known as pay for performance or variable pay plans. These refer to compensation in addition to base wages. They can help motivate employees to perform their best and boost company profits.
There is 1 question to complete.