According to the textbook,what is the fundamental premise of variable pay plans?
A) Workers should only be paid for the work that they complete.
B) Top performers must get top pay to secure their commitment to the organization.
C) Create incentives for customers to purchase the company's products.
D) Enable the organization to reduce labour costs when profits decline.
E) Accommodate the different needs of workers.

Question

Quizplus · Accepted Answer

The fundamental premise of variable pay plans is that top performers should receive top pay to ensure their commitment to the organization. This creates an incentive for employees to work harder and perform better, which ultimately benefits both the employee and the organization. Other choices such as A, C, D, and E are not accurate descriptions of the fundamental premise of variable pay plans.

According to the Textbook,what Is the Fundamental Premise of Variable