As an employer,you believe it is always a good idea to pay people for their contributions to organizational results.Which plan would likely be the key component of the compensation plan?

A) indirect pay
B) base pay
C) pay for knowledge
D) performance pay

Performance pay is the most direct way to reward employees for their contributions to organizational results. It links compensation directly to individual or team performance, incentivizing employees to work harder and achieve better results in order to earn higher pay. Indirect pay (A) refers to benefits and other non-monetary rewards, base pay (B) is the salary or hourly wage that an employee earns as their primary compensation, and pay for knowledge (C) rewards employees for acquiring new skills and knowledge, rather than directly tying compensation to results. While these other forms of compensation can also be important, performance pay is the key component for motivating employees to contribute to organizational success.