Question

When incorporating different levels of incentive pay, what are the primary levels of incentive pay structures typically used in organizations?

A) Individual, team, and organizational
B) Base pay, bonus pay, and commission pay
C) Performance-based, profit-sharing, and stock options
D) Short-term, long-term, and strategic incentives

Answer 1

The primary levels of incentive pay structures typically used in organizations are individual, team, and organizational; performance-based, profit-sharing, and stock options; and short-term, long-term, and strategic incentives.

Step-by-step explanation:

The primary levels of incentive pay structures typically used in organizations are:

• Individual, team, and organizational: In this structure, incentives are provided to individuals based on their individual performance, to teams based on their collaborative effort, and to the entire organization based on overall performance.
• Performance-based, profit-sharing, and stock options: This structure involves providing incentives based on individual or team performance, sharing profits with employees, and offering stock options as a form of long-term incentive.
• Short-term, long-term, and strategic incentives: In this structure, incentives are categorized based on the time frame they cover. Short-term incentives are provided for immediate performance, long-term incentives are offered for sustained performance, and strategic incentives are designed to align individual goals with organizational objectives.