What Differentiates Merit Pay from Other Types of Performance Pay

question 18

Multiple Choice

What differentiates merit pay from other types of performance pay, such as piece rates, sales commissions, and target incentives?

• A) Merit pay can be used as a substitute for time-based pay.
• B) Merit pay is based on specific aspects of performance.
• C) Merit pay is rarely used in combination with base pay.
• D) Merit pay is generally based on appraised performance.

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Definitions:

Concessions

Acts of yielding or compromising in a negotiation, where one party agrees to give up part of their demands to reach an agreement.

Proposal

A plan or suggestion put forward for consideration or discussion by others.

BATNA

Best Alternative To a Negotiated Agreement; the most advantageous course of action a party can take if negotiations fail.

Yielding

In a negotiation or conflict context, yielding refers to one party giving in or accommodating the demands or interests of another.