Decisions about how to design pay systems should follow a careful consideration of all of the possible consequences associated with alternative forms of pay.Which of the following is the most important reason for introducing performance-based pay?
A)to reward top management
B)to keep up with competitors
C)to motivate employees
D)to help achieve their strategic objectives
E)to integrate the pay system with the organizational mission

Question

Quizplus · Accepted Answer

The most important reason for introducing performance-based pay is to help achieve strategic objectives. By linking pay to performance, organizations can incentivize employees to work towards specific goals that align with the organization's overall mission and vision. This can lead to increased motivation, productivity, and ultimately, success in achieving strategic objectives. While rewarding top management and keeping up with competitors may also be reasons for introducing performance-based pay, they are not as important as aligning pay with strategic objectives. Integrating the pay system with the organizational mission is also important, but it is not necessarily the most important reason for introducing performance-based pay.

Decisions About How to Design Pay Systems Should Follow a Careful