Asked by Amrita Tambar on Jun 04, 2024
Verified
Which condition make it impractical to use output-related pay?
A) Output is easy to measure.
B) Output is very stable.
C) Output cannot be controlled by the individual employee.
D) Output is easy to price in terms of its value to the employer.
Output-Related Pay
A compensation model where an employee's earnings are directly tied to the quantity or quality of their work output, encouraging productivity and performance.
Individual Employee
A single person who works for a company or organization and contributes to its objectives through their labor or expertise.
Employer Value
The benefits and offerings provided by an employer that make the organization attractive to current and potential employees, often including compensation, work-life balance, and career opportunities.
- Understand different compensation strategies and their application within organizations.
Verified Answer
EL
Emily LopezJun 05, 2024
Final Answer :
C
Explanation :
Output-related pay is impractical when the output cannot be controlled by the individual employee. If the employee is not in control of the output, then it would be unfair to use output-related pay as a measure of their productivity. For example, a salesperson may not be responsible for the number of customers who come into the store, so using output-related pay based on sales figures would be impractical.
Learning Objectives
- Understand different compensation strategies and their application within organizations.