Middle managers are rewarded for especially productive output-for producing earnings that significantly exceed the cost of bonuses and this newer incentive plan is called ________.
A) pay for performance
B) variable pay
C) bonuses
D) A and B

Question

Quizplus · Accepted Answer

The newer incentive plan for middle managers that rewards productive output, specifically when earnings significantly exceed the cost of bonuses, is called pay for performance. This is a form of variable pay because the compensation is based on performance outcomes rather than a fixed salary or standard bonus. Therefore, both options A (pay for performance) and B (variable pay) are correct. Option C (bonuses) is not the best choice because it is too general and does not specify the type of incentive plan being used.

Middle Managers Are Rewarded for Especially Productive Output-For Producing Earnings