The Goal of a Performance Pay System Is to Get

question 24

Essay

The goal of a performance pay system is to get an employee to meet and exceed production quotas or goals. But an employee is always faced with events that are clearly beyond his/her control. What measures can be taken by management to understand and minimize the impact of these 'random' elements in the production system?

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Definitions:

Wholesalers

Businesses that purchase goods in large quantities from manufacturers or distributors and then sell them in smaller quantities to retailers or other businesses.

Wholesaler

A type of business that purchases goods in large quantities from manufacturers or importers and sells them to retailers, other wholesalers, or occasionally to final consumers.

Intermediary

A person or organization that acts as a mediator or agent between parties, especially in a business or financial transaction.

Ownership

The legal right to possess, use, and dispose of something; often refers to the possession of assets.