Due to Carly's influence on increasing profits as manager of the Marble Flooring Division,her company decided to increase her salary from $60,000 per year to $70,000 per year. This is an example of which of the following reward systems?
A) Stock ownership plan.
B) Merit pay.
C) Continuance commitment.
D) Awards.
E) Non-monetary reward plan.

Question

Quizplus · Accepted Answer

Merit pay is a reward system where an individual's pay is increased based on their contributions to the company, such as through increased profits or improved efficiency. In this case, Carly's salary increase is directly linked to her influence on increasing profits, making it an example of a merit pay system. The other answer options (stock ownership plan, continuance commitment, awards, and non-monetary reward plan) do not apply to the situation described.

Due to Carly's Influence on Increasing Profits as Manager of the Marble