How does plantwide pay-for-performance work?
A) Employees are rewarded for quality improvements.
B) Employees receive a portion of the firm's cost savings.
C) Employees are divided into teams that receive rewards based on team performance.
D) Employees receive bonuses based on the corporation's stock market performance.

Question

Quizplus · Accepted Answer

Plantwide pay-for-performance programs typically distribute a portion of the firm's cost savings among employees as a bonus. This incentivizes employees to identify ways to reduce costs and improve company profitability. Option A and C are examples of team-based pay-for-performance programs, while option D is a form of equity-based compensation that does not directly tie performance to cost savings or company profit.

How Does Plantwide Pay-For-Performance Work