Which of the following is an example of tournament pay?
A) giving a bonus to the sales agent with the highest sales
B) giving a bonus to sales agents based on the gross amount of their sales
C) giving a bonus to the sales agent with the most hours of working
D) giving a bonus to sales agents based on the hours of overtime work

Question

Quizplus · Accepted Answer

Tournament pay involves rewarding employees based on their rank or performance relative to their colleagues. Giving a bonus to the sales agent with the highest sales is an example of tournament pay because it rewards the employee who performs the best compared to their coworkers. B is incorrect because it does not necessarily involve ranking employees. C and D are also incorrect because they are based on the number of hours worked rather than performance.

Which of the Following Is an Example of Tournament Pay