The structure of a pay plan

Question

Quizplus · Accepted Answer

The structure of a pay plan influences the degree to which employees are motivated to perform well. A well-designed pay plan should provide incentives that encourage employees to work harder and achieve better results. This, in turn, can lead to higher levels of motivation and productivity. The Pygmalion effect, which refers to the phenomenon of people living up (or down) to the expectations of others, can also impact motivation, but it is not directly related to the structure of a pay plan. Supervisors may play a role in the implementation and management of a pay plan, but the plan itself does not decide their specific roles.

The Structure of a Pay Plan