For a pay-for-performance system to work,it should:
A)be exclusive;only the best performers may be part of the plan.
B)make sure that pay and performance are clearly and closely linked.
C)be complex enough to include all elements that affect performance.
D)be administered by an outside agency on a contract basis to avoid bias.

Question

Quizplus · Accepted Answer

For a pay-for-performance system to work, pay and performance should be clearly and closely linked. This means that employees should be able to understand how their performance affects their pay, and the link between pay and performance should be transparent to avoid any confusion or dissatisfaction. While exclusivity and complexity may be factors in designing the plan, they are not essential for it to work effectively. Likewise, having an outside agency administer the plan may not necessarily prevent bias, as the agency may still be subject to the same biases as the organization itself.

For a Pay-For-Performance System to Work,it Should