Question

Token Inc. is an envelope manufacturer based in Dallas. The employees of the organization receive incentive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays an incentive in addition to wages and salaries. In this case, which of the following incentives is offered by Token Inc.?

Answer 1

differential piecework rate

Step-by-step explanation:

Differential piecework rate is a type of incentive pay structure that stimulates and rewards employees' efficiency and performance over average production levels.

Incentive pay structures are designed to direct and control the employees' behavior in order to increase their performance so the organization's goals are achieved.

An important aspect of incentive pay s that employees must value the rewards being offered.