As director of compensation for BlueBottle Enterprises,you have implemented a highly successful pay-for-performance system.This system has worked successfully for three years as measured by a number of financial and non-financial measures.Because of this success you are considering quitting BlueBottle and setting up your own consulting firm to promote this system.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The effectiveness of a pay-for-performance system is highly dependent on the organizational culture. It may not work in all organizations. Therefore, it is essential to have a way to evaluate organizational cultures to select the organizations in which the pay-for-performance system will be effective. Option A is not necessarily true as industries vary in their requirements and culture. Option B is not a good approach as firms with poor performance might not have the resources to implement a pay-for-performance system. Option C assumes that pay is the only factor that affects employee satisfaction, which is not true.

As Director of Compensation for BlueBottle Enterprises,you Have Implemented a Highly