When Objective Performance Measures Are Unavailable but the Company Still

question 60

Multiple Choice

When objective performance measures are unavailable but the company still wants to base pay on performance, it uses a(n)

• A) gainsharing plan.
• B) profit-sharing plan.
• C) individual incentive plan.
• D) merit pay system.
• E) stock option plan.

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Definitions:

Stored

Kept or accumulated for future use, referring to anything that can be retained or conserved for a period of time.

Compete

To strive for a goal, such as a prize or higher status, against others by overcoming challenges and obstacles.

Topsoil

The uppermost layer of soil, which has the highest concentration of organic matter and microorganisms, and is where most plant roots grow.

Productivity

The rate at which goods or services are produced, especially in relation to the input of labor, materials, and energy.