In which of the following ways do incentive plans differ from merit pay plans?
A)They rely on countable results as basis for setting PFP rate.
B)They use performance appraisal data as the basis for the increase.
C)They use standard hours rather than labor costs to determine incentive pay.
D)They have less union support.
E)Are illegal under the Fair Labor Standards Act.

Question

Quizplus · Accepted Answer

Incentive plans typically rely on countable results, such as sales volume or units produced, as the basis for determining pay. Merit pay plans, on the other hand, use performance appraisal data as the primary factor in determining pay raises.

In Which of the Following Ways Do Incentive Plans Differ