Asked by Corien Frazier on Jul 27, 2024
Verified
________ is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary.
A) Merit pay
B) Gainsharing
C) Group bonus
D) Profit sharing
E) Commission
Profit Sharing
A strategy where employees receive a direct share of a company's profits, typically in the form of bonuses or stocks.
Incentive Pay
A form of compensation designed to reward employees for their performance or achieving specific goals.
Base Salary
The initial rate of compensation an employee receives before any bonuses, benefits, or overtime allowances are added.
- Understand the positive impact that profit sharing has on improving the efficiency of an organization.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
D
Explanation :
Profit sharing is a type of incentive pay in which payments are a percentage of an organization's profits and do not become part of its employees' base salary. Merit pay is a raise in pay based on an employee's individual performance, while gainsharing, group bonus, and commission are all types of incentives based on group or individual performance that do become part of an employee's base pay.
Learning Objectives
- Understand the positive impact that profit sharing has on improving the efficiency of an organization.