In Order for Performance-Based Pay to Be Used Effectively in an Organization

question 24

Multiple Choice

In order for performance-based pay to be used effectively in an organization, it is necessary to:.

• A) link performance to outcomes important to management but not necessarily the employee
• B) develop valid performance measures
• C) promote a secret pay policy so everyone will work to their maximum
• D) do away with merit based pay increases
• E) reduce the cost of benefits so performance based pay can be afforded

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Definitions:

Inferential Statistics

A branch of statistics that allows us to infer trends about a population based on samples from that population.

Hypothesis

A proposed explanation for a phenomenon, intended to be tested through experimentation or observation.

Scientific Theory

A well-substantiated explanation of some aspect of the natural world, based on a body of facts that have been repeatedly confirmed through observation and experimentation.

Testable

Describing a hypothesis or theory that can be examined through experimentation or observation to determine its validity.