Asked by Lonette McMorris on Jun 09, 2024
Verified
Which statement is true of a performance bonus?
A) It is designed to reward group performance.
B) It should be re-earned by employees during each performance period.
C) It is rolled into base pay and provided yearly or monthly.
D) It lacks flexibility and hence it is less popular.
E) It is exclusively linked to subjective ratings, rather than objective performance measures.
Performance Bonus
Additional financial compensation awarded to employees based on an evaluation of their work performance, often related to achieving specific targets or goals.
- Gain an understanding of the principles and goals of incentive remuneration and its impact on staff behavior.
- Realize the contribution of compensation schemes to the motivation of employees and the success of the organization.
Verified Answer
PB
Passionn BrownJun 12, 2024
Final Answer :
B
Explanation :
A performance bonus is designed to reward individual performance and should be re-earned by employees during each performance period based on their individual achievements. The bonus is not rolled into base pay and is typically given as a lump sum payment. The bonus may be tied to both subjective and objective performance measures, and it can be flexible in structure and design.
Learning Objectives
- Gain an understanding of the principles and goals of incentive remuneration and its impact on staff behavior.
- Realize the contribution of compensation schemes to the motivation of employees and the success of the organization.
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