What Is the Purpose of Incentive Pay Plans

question 259

Short Answer

What is the purpose of incentive pay plans?
They provide a mechanism for managers to constructively discipline troublesome employees
To motivate high performance
To reduce the amount of wages payable to employees
They permit accurate and honest performance appraisals
Compliance with federal law which requires incentives such as social insurance and workers' compensation

---

Definitions:

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.

Competition Act

A law designed to preserve and promote competition and to protect consumers from anti-competitive practices by companies.

Money-back Guarantee

A pledge to refund a customer's payment if the product or service does not meet the advertised standards or expectations.

Abuse of Dominant Position

An anti-competitive business practice where a dominant firm uses its market power to exclude competitors or exploit consumers.