What Is the Purpose of Incentive Pay Plans

question 75

Multiple Choice

What is the purpose of incentive pay plans?

• A) To provide a mechanism for managers to constructively discipline troublesome employees
• B) To motivate high performance
• C) To reduce the amount of wages payable to employees
• D) To permit accurate and honest performance appraisals
• E) Compliance with federal law, which requires incentives such as social insurance and workers' compensation

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Definitions:

Strategic Model

A framework or plan of action designed to achieve a particular goal or set of objectives, often used in business or military contexts.

Policies

Principles or rules created to guide decisions and achieve rational outcomes.

Future Plans

Intentions or strategies devised for achieving specific future goals.

Marketing Research

Identifying a target market and finding out if a product or service matches customer desires.