Plans in which employees can earn additional compensation in return for certain types of performance are called
A) performance management systems.
B) performance appraisal systems.
C) incentive systems.
D) compensation packages.
E) base pay.

Question

Quizplus · Accepted Answer

Incentive systems are plans that offer additional compensation or rewards to employees for achieving certain levels of performance. Performance management systems and performance appraisal systems are broader concepts that include methods for monitoring and evaluating employee performance, but may not necessarily involve compensation-based incentives. Compensation packages generally refer to the entire array of financial and non-financial benefits an employee receives, while base pay refers specifically to the fixed salary or wage an employee earns.

Plans in Which Employees Can Earn Additional Compensation in Return