To minimize problems,a pay-for-performance plan should:
A) appropriately link pay and performance.
B) use pay-for-performance as a stand-alone program.
C) downplay the rewards to avoid an over-focus on productivity.
D) use a single-layer, simple program.

Question

Quizplus · Accepted Answer

To be effective, a pay-for-performance plan must appropriately link pay and performance. This means that employees should be rewarded based on their actual performance and contribution to the organization. Using pay-for-performance as a stand-alone program (option B) may not be effective, as it should be integrated with other performance management and compensation practices. Downplaying rewards (option C) may lead to disengagement and demotivation, while a single-layer, simple program (option D) may not provide the necessary nuance to reflect differences in performance and contribution.

To Minimize Problems,a Pay-For-Performance Plan Should