Asked by SiYata Hackett on Jul 23, 2024
Verified
Julie, the HR manager at Forge Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julie would be applying the system of
A) merit pay.
B) piecework pay.
C) standard hour pay.
D) commissions.
E) attendance bonus.
Compa-Ratios
A comparison ratio used in human resources to assess the relative pay level of an individual's salary to the midpoint of a salary range for their position.
- Understand the variety in incentive pay schemes, encompassing differential piece rate plans, standard hour layouts, pay based on merit, and gainsharing.
- Master the concept of linking incentive pay with performance assessments.
Verified Answer
SM
Shahnoor MohiuddinJul 30, 2024
Final Answer :
A
Explanation :
Julie is using the system of merit pay, which rewards individuals based on their performance and contribution to the organization. This is in contrast to piecework pay, which pays based on the quantity of work produced, standard hour pay, which pays based on the time worked, commissions, which pay based on sales, or attendance bonus, which rewards employees for showing up to work on time.
Learning Objectives
- Understand the variety in incentive pay schemes, encompassing differential piece rate plans, standard hour layouts, pay based on merit, and gainsharing.
- Master the concept of linking incentive pay with performance assessments.
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