Compensation plans that pay employees on the basis of their contribution to the effectiveness of the organization are referred to as ________ _.

Question

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Pay-for-performance programs are designed to reward employees based on their individual contribution to the effectiveness of the organization. These programs are often tied to specific goals or objectives and are intended to provide employees with a direct link between their efforts and their compensation. In contrast, equity theory focuses on the fairness of an individual's compensation relative to that of others in the organization, while stock options are a form of equity-based compensation and expectancy theory relates to an individual's belief that their efforts will result in a desired outcome.

Compensation Plans That Pay Employees on the Basis of Their