What would limit the effectiveness of performance based pay?
A) Link it to the strategy of the organization
B) Ensure its consistency
C) Failure to tailor rewards to the situation
D) Use it to motivate employees

Question

Quizplus · Accepted Answer

Failure to tailor rewards to the situation can limit the effectiveness of performance-based pay. This means that if the rewards are not aligned with the specific goals and objectives of the organization, it may not motivate employees to perform better. Tailoring rewards to the situation ensures that they are meaningful and relevant, making them more effective in motivating employees to improve their performance. Linking it to the organization's strategy and ensuring consistency are also important factors that can enhance the effectiveness of performance-based pay, but they are not relevant to the question. Using it to motivate employees is the purpose of performance-based pay, and not a limitation.

What Would Limit the Effectiveness of Performance Based Pay