Pay-for-performance programs
A)tie rewards to firm profitability.
B)are easy to implement and measure.
C)tie rewards to employee effort.
D)result in negligible increases in output.

Question

Quizplus · Accepted Answer

Pay-for-performance programs tie rewards to employee effort, often measured by individual or team performance metrics such as sales targets, production output, or customer satisfaction ratings. These programs can increase motivation and productivity, but their success depends heavily on the accuracy and fairness of the metrics chosen and the communication and transparency of the program. Tying rewards to firm profitability (A) may be too indirect and less motivating for employees, while easy implementation and measurement (B) is not necessarily a good thing if it means oversimplifying or neglecting important performance factors. Negligible increases in output (D) would indicate that the program is not effective and should be revised or abandoned.

Pay-For-Performance Programs