75.2k views
0 votes
Under what conditions would you suggest that a performance-based pay plan be implemented for an employee?

A) The employee's decisions are directly tied to the company's performance
B) The employee is a top performer
C) The company is struggling financially and is about to file for bankruptcy
D) The company has many suitable candidates to fill that employee's position

User Jelford
by
6.9k points

2 Answers

6 votes

Answer:

The correct answer is (A) The employee's decisions are directly tied to the company's performance.

Step-by-step explanation:

1. D

2.C

3.C

4.C

5.C

6.A

7.C

8.A

9.A

10.B

User Roger Lam
by
7.3k points
6 votes

Answer:

B) The employee is a top performer

Step-by-step explanation:

The performance-based pay system rewards an employee based on their performance against a set of pre-agreed objectives. This pay structure motivates employees to work harder and increases labor efficiency.

Since the performance-based pay compensation is tied to the employees' contributions to the company, only the top-performing employees survive in this pay structure.

User Nelson Orland
by
6.9k points