Revlex Inc.has implemented a refinement of the salary cut-off approach to short-term incentive eligibility,which assumes that all managers should be eligible for short-term incentives; this criterion is referred to as which of the following?
A) Salary grade
B) Performance appraisal
C) Gainsharing
D) Key position
E) Profit-sharing

Question

Quizplus · Accepted Answer

The refinement of salary cut-off approach falls under salary grade as it assumes that all managers should be eligible for short-term incentives based on their salary grade. Performance appraisal evaluates individual employee's performance, gainsharing and profit-sharing are group incentive plans, and key position refers to specific positions that are critical for the success of the organization, which may or may not receive incentives.