In order for performance-based pay to be used effectively in an organization, it is necessary to:.
A) link performance to outcomes important to management but not necessarily the employee
B) develop valid performance measures
C) promote a secret pay policy so everyone will work to their maximum
D) do away with merit based pay increases
E) reduce the cost of benefits so performance based pay can be afforded

Question

Quizplus · Accepted Answer

Developing valid performance measures is necessary for performance-based pay to be effective. This ensures that the pay is tied to actual performance rather than arbitrary or biased factors. The other choices are not necessary or helpful for effective use of performance-based pay.

In Order for Performance-Based Pay to Be Used Effectively in an Organization