Asked by Lucas Castro on Jun 01, 2024
Verified
Marty and Biff both work for the same company producing the same teacups. Because they get paid a certain amount for each teacup they produce, and because Biff produces more teacups than Marty, Biff makes more money than Marty. This scenario is an example of a ______.
A) piece rate plan
B) profit sharing plan
C) merit pay plan
D) gainsharing plan
Piece Rate Plan
A compensation system where employees are paid based on the quantity of work they produce or tasks they complete.
Profit Sharing Plan
An incentive program where employees receive a portion of the company's profits, encouraging performance and aligning interests within the organization.
Merit Pay Plan
A compensation strategy that rewards employees based on their performance and achievements.
- Explicate different compensation models based on performance and their utilization.
Verified Answer
Learning Objectives
- Explicate different compensation models based on performance and their utilization.
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