Pay-for-performance systems link the incomes of workers to their performance, providing an incentive for employees to work harder and increase their output. This can be achieved through bonuses or commission-based structures, encouraging employees to meet or exceed performance targets in exchange for increased pay.

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Pay-For-Performance

Question 99

Multiple Choice

Pay-for-performance:

A) creates incentives for employers to focus on nonwork tasks.
B) links the incomes your workers earn to their performance.
C) links an employer's goals to the goals of its customers.
D) gets customers to buy more in exchange for discounts.

Correct Answer: