A Compensation Structure That Generates Much Higher Pay Rates for the Top

question 50

Multiple Choice

A compensation structure that generates much higher pay rates for the top performers, while those whose productivity is only a little lower receive substantially less compensation, is called

• A) tournament pay.
• B) competing differentials.
• C) dueling executives.
• D) winner take all.

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Definitions:

Performance Goal

Goals oriented towards demonstrating competence and being judged favorably by others.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Worker Motivation

The set of internal and external factors that stimulate workers to take actions that lead to achieving work-related goals.

Set Point Theory

A theory suggesting that the body regulates its weight and energy balance through internal controls, maintaining a stable weight over time.