Asked by Jasmine Gardiner on May 29, 2024
Verified
Decisions about how to design pay systems should follow a careful consideration of all of the possible consequences associated with alternative forms of pay. Which of the following is the most important reason for organizations to adopt the performance-based pay approach to compensating its employees?
A) to reward top management
B) to keep up with competitors
C) to motivate employees
D) to help achieve their strategic objectives
E) to integrate the pay system with the organizational mission
Performance-Based Pay
A compensation strategy where an employee's pay is directly linked to their performance and achievements in the workplace.
Strategic Objectives
Long-term goals that help to guide an organization towards its envisioned future state and success.
Organizational Mission
The fundamental purpose or goal that guides a company or institution, often stated in a mission statement.
- Identify the strategic goals accomplished via performance-oriented pay.
- Understand the importance of distinct performance objectives and how they align with the goals of the organization.
Verified Answer
Learning Objectives
- Identify the strategic goals accomplished via performance-oriented pay.
- Understand the importance of distinct performance objectives and how they align with the goals of the organization.
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