Managers seeking to develop compensation programs designed to link pay to employee performance will
A) establish a merit pay system.
B) include a tip pooling arrangement.
C) exclude a tip pooling arrangement.
D) pay wages higher than the local average.

Question

Quizplus · Accepted Answer

A merit pay system is a common approach to linking pay to employee performance. It rewards individual employees based on their performance and contributions to the organization, rather than solely on their seniority or job title. This can help incentivize employees to work harder and contribute more to the company's success. Tip pooling arrangements are not relevant to this goal, and paying wages higher than the local average may not necessarily be tied to performance.

Managers Seeking to Develop Compensation Programs Designed to Link Pay