One Problem with Pay for Performance Is That

question 32

Multiple Choice

One problem with pay for performance is that

• A) it provides incentives for workers to put forth effort.
• B) workers are risk-averse.
• C) supervision is very expensive.
• D) workers are income maximizers.

---

Definitions:

Venturesomeness

A willingness to undertake risky or innovative projects or ideas; characterized by boldness or innovation.

Self-Confidence

The belief in one's abilities, qualities, and judgment.

Individual Traits

Refers to the personal characteristics and qualities that differentiate one person from another.

Uncompensated Work Time

Periods during which an employee or worker is engaged in job-related activities without receiving financial compensation.