How Does Merit Pay Differ from a Bonus

question 41

Multiple Choice

How does merit pay differ from a bonus?

• A)A bonus becomes part of an employee's base pay, but merit pay does not.
• B)Merit pay is linked to individual performance, while a bonus is not.
• C)Merit pay becomes part of an employee's base pay, but a bonus does not.
• D)A bonus is a type of gift.
• E)A bonus is linked to individual performance, while merit pay is linked to company performance

Recognize the role of technology and strategic planning in modern human resource management.

Describe the significance of a people-centered corporate culture.

Explain the importance of rigorous hiring processes and job security in human resource management.

Analyze the effectiveness of recruitment strategies and their alignment with organizational goals.

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Definitions:

Marginal Benefit

The boost in utility or enjoyment derived from the additional consumption of a unit of a good or service.

Government Intervention

Actions taken by a government to affect the economy in various ways, such as through regulations, taxes, subsidies, or direct provision of goods and services.

Beneficiaries

Individuals or groups that receive benefits or advantages from something, typically from a trust, insurance policy, or a program.

Pigouvian Tax

A tax imposed on any market activity that generates negative externalities, intended to correct an undesirable or inefficient market outcome.