Accurate performance appraisal is a precondition for effective variable pay plans.

Question

Quizplus · Accepted Answer

In order for the variable pay plans to effectively incentivize and reward employees based on their performance, a fair and accurate performance appraisal system is necessary. Without accurate performance appraisal, the variable pay plans may not properly identify and reward high-performing employees, potentially leading to demotivation and dissatisfaction among the workforce.

Accurate Performance Appraisal Is a Precondition for Effective Variable Pay