Asked by Frederick Schneider on May 13, 2024

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When compared to merit pay, incentives tied to unit or companywide performance

A) can be more subjectively based
B) is a permanent increase in pay
C) is not as useful in tying rewards to outcomes as merit pay
D) can create an ownership mentality in employees
E) is accurately described by all of the above

Merit Pay

A salary increase awarded to employees based on their job performance, acting as a motivational tool by rewarding high performers.

Unit Performance

The measurement of the efficiency, effectiveness, and productivity of a specific department or operational unit within an organization.

Ownership Mentality

A mindset where employees view themselves as co-owners of the business, taking responsibility for its success and acting in its best interest.

  • Differentiate between merit-based remuneration and incentive compensation.
  • Gain insight into the fundamental aspects and prerequisites for proficiently operating performance-based systems.
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Thenuka PERERAMay 20, 2024
Final Answer :
D
Explanation :
Incentives tied to unit or companywide performance can create an ownership mentality in employees, which is not true for merit pay. Options A, B, and C are not applicable for incentives tied to unit or companywide performance.