What differentiates merit pay from other types of performance pay, such as piece rates, sales commissions, and target incentives?
A) Merit pay can be used as a substitute for time-based pay.
B) Merit pay is based on specific aspects of performance.
C) Merit pay is rarely used in combination with base pay.
D) Merit pay is generally based on appraised performance.

Question

Quizplus · Accepted Answer

Merit pay is typically based on appraised performance, where employees receive pay increases based on their performance evaluations, unlike piece rates, sales commissions, and target incentives which are directly tied to measurable outputs or achievements.

What Differentiates Merit Pay from Other Types of Performance Pay