Identify and briefly explain the nature of individual performance pay plans.

Individual performance pay plans-piece rates,sales commissions,merit pay,and special-purpose incentives-generally focus on promoting task behaviour.Under piece rates,an employee receives a specified sum of money for each unit of output produced or processed.They are commonly used in manufacturing and service sectors.Sales commissions are used to compensate sales personnel in a variety of industries.Sales associates receive a certain percentage of their gross sales.The commission rate often varies,depending on the products or services sold.Merit pay is used to recognize and encourage continuing good performance,and unlike the other types of performance pay,is based on appraisals of overall employee performance.Special-purpose incentive programs (sometimes referred to as "targeted incentive programs")are intended to promote and reward certain behaviours that are of special importance to an organization,or to counteract behaviours that are causing problems.Such incentives are most appropriate in circumstances where intrinsic motivation does not already exist,where both intended and unintended behaviours are easy to observe,and where no other alternatives for inducing the desired behaviour are feasible.