An Example of an Organization Who Compensates Employees Based on Performance

question 30

Multiple Choice

An example of an organization who compensates employees based on performance would most likely be:

• A) paying an employee based on the average number of parts they inspect every four hours.
• B) providing an employee with a flat hourly rate for each hour of work they perform.
• C) paying an employee an annual salary based on the management role they hold.
• D) providing an employee with a holiday bonus each year in December.
• E) providing a sales employee with a company car due to the volume of sales calls they make.

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Definitions:

Differentiated

Products or services that are distinct from one another due to variation in design, quality, or other attributes, allowing them to appeal to different consumer preferences.

Starbucks

An American multinational chain of coffeehouses and roastery reserves known for its signature coffee drinks, teas, and baked goods, with a global presence.

Quality

The standard of something as measured against other similar things; a degree or level of excellence.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.