Which of the Following Is Not a Characteristic of Performance

question 23

Multiple Choice

Which of the following is not a characteristic of performance based pay?

• A)The slope of the relationship between pay and performance for an employee provides incentives for effort,not the level of pay
• B)Employees will always prefer performance based pay thus aligning principal/agent objectives
• C)The overall value maximizing effort level for an employee occurs when personal marginal benefit equals personal marginal cost
• D)Performance based pay can resolve hidden information problems
• E)Pay contracts approaching 100% commission and negative salaries can occur

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Definitions:

Realistic Group Conflict

The theory that group conflicts arise from actual competition for resources or conflicting goals between groups.

Resource-Rich Land

Refers to areas abundant in natural resources which can be utilized for economic gain, such as minerals, forests, and water.

Intergroup Conflict

A situation where members of different groups experience friction, competition, or disagreement, often resulting in tension and conflict.

Social Identity Theory

A psychological theory that explains how individuals categorize themselves and others into groups, which affects their self-esteem and behaviors.