XYZ Ltd Has Just Introduced a Performance-Based Reward System for All

question 167

Essay

XYZ Ltd. has just introduced a performance-based reward system for all production employees. The plan pays employees a team-based bonus based on the reduction of labour costs per unit in the production department. Describe three strategies to ensure that this and other performance-based reward systems are effective. Your answer should also briefly state the type of reward system used by XYZ Ltd.

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Definitions:

Correlate

To possess a reciprocal relationship or link, where one element influences or relies upon another.

Measures

Tools or instruments used to quantify or categorize variables, typically for the purpose of research or assessment.

Test Validity

The degree to which a test accurately measures what it intends to measure.

Hypothetical Constructs

Theoretical entities or concepts that are not directly observable but are used to explain or predict behavior or phenomena.