A compensation system in which employees' pay depends on how well they perform their jobs is known as ________.
A)a profit-sharing plan
B)open book management
C)a pay-for-performance compensation system
D)a commission compensation plan

Question

Quizplus · Accepted Answer

A pay-for-performance compensation system rewards employees based on their performance and achievements on the job, motivating them to work harder and achieve better results. Profit-sharing plans distribute a portion of the company's profits to all employees, regardless of their individual contributions. Open book management involves actively sharing financial information with employees to help them understand the company's performance and goals. A commission compensation plan provides employees with a percentage of each sale they make, which is not necessarily tied to their overall job performance.

A Compensation System in Which Employees' Pay Depends on How