Which of the following incentive compensation systems allows an organization to pay an employee a certain amount of money for each unit of output he or she produces?
A) Piece-rate plan
B) Merit-pay plan
C) Bonus
D) Commission
E) Knowledge-based pay

Question

Quizplus · Accepted Answer

The piece-rate plan is a compensation system where an employee is paid a certain amount for each unit of output produced. It is often used in manufacturing and production industries where employees work on assembly lines or produce a certain product.

Which of the Following Incentive Compensation Systems Allows an Organization