Which of the following is true of incentive pay?
A)Incentive pay is considered part of an employee's fringe compensation.
B)The criteria for judging an award tends to be objective,such as quantity produced.
C)Award levels are subjective.
D)The amount of the award paid for attainment of goals is not communicated in advance.

Question

Quizplus · Accepted Answer

Incentive pay is typically tied to objective criteria, such as quantity produced or sales made, as it is intended to motivate employees to achieve specific goals. The other options are not true of incentive pay; it is not considered part of an employee's fringe compensation (A), award levels can be either objective or subjective depending on the specific program (C), and the amount of the award is typically communicated in advance to motivate employees (D).

Which of the Following Is True of Incentive Pay