Which of the Following Are Potential Problems with Performance-Based Pay

question 132

Multiple Choice

Which of the following are potential problems with performance-based pay plans?

• A)Employers offer rewards that employees don't value.
• B)Some plans reward individual performance when the employee's work is highly interdependent.
• C)It is difficult to anticipate the unintended consequences of performance-based rewards.
• D)All of the answers are correct.
• E)Some plans reward individual performance when the employee's work is highly interdependent and it is difficult to anticipate the unintended consequences of performance-based rewards.

---

Definitions:

Profit And Loss

The financial statement that summarizes revenues, costs, and expenses to show the net profit or loss of a business over a specific time period.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price, such as pollution caused by manufacturing.

Special-Interest Effect

The impact on policy or decision-making driven by the concentrated benefits to a small group while the costs are dispersed among the general population.

Pork-Barrel Politics

Refers to the allocation of public funds for projects designed primarily to benefit constituents of a politician in return for their political support.