Asked by itzel valenzuela on Jul 23, 2024
Verified
An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as
A) commissions.
B) the Scanlon plan.
C) merit pay.
D) gainsharing.
E) profit sharing.
Performance Appraisals
The process through which an employee's job performance is evaluated, typically on a regular basis such as annually or semi-annually.
Merit Pay
A pay increase given to employees based on their performance, rewarding those who perform their job well.
- Highlight the spectrum of incentive payment designs, including differential piece rate outlines, standard hour configurations, merit-oriented compensation, and gainsharing methodologies.
- Understand how incentive pay can be linked to performance appraisals.
Verified Answer
EA
Eleine AndresJul 26, 2024
Final Answer :
C
Explanation :
This is a clear description of merit pay, which links pay increases to performance ratings. Commission is a type of pay structure based on sales, while the Scanlon plan, gainsharing, and profit sharing are all different types of group incentive systems.
Learning Objectives
- Highlight the spectrum of incentive payment designs, including differential piece rate outlines, standard hour configurations, merit-oriented compensation, and gainsharing methodologies.
- Understand how incentive pay can be linked to performance appraisals.