FancyFoods Provides a Monthly Bonus for Servers When Sales Volume

question 1

Multiple Choice

FancyFoods provides a monthly bonus for servers when sales volume exceeds 120 percent of the same month last year.The size of bonus is tied to the individual server's sales of meals in comparison to an average server's sales.This system attempts to introduce a(n) :

• A)risk-sharing contract.
• B)relative performance contract.
• C)absolute performance contract.
• D)group performance contract.

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Definitions:

Absenteeism

The habitual or frequent absence from work or duties without good reason, which can impact organizational productivity and morale.

Indirect Compensation

Benefits given to employees that are not paid directly as cash but contribute to their overall remuneration, such as insurance or retirement plans.

Bonuses

Additional financial compensation awarded to employees as a reward for their exceptional performance or achievement.

Commissions

A type of incentive pay calculated as a percentage of the employee's sales or performance.