Objectives for a pay plan
A)are not needed in a performance-based plan.
B)must be stated for a performance-based plan to work.
C)are essential for a periodic compensation plan to be successful.
D)are unnecessary for a merit pay plan.

Question

Quizplus · Accepted Answer

Objectives are necessary for a performance-based pay plan to work effectively. It provides clarity and accountability for employees, and ensures that they are aware of what is expected of them in terms of job performance and compensation. Without stated objectives, employees may not have a clear understanding of how to achieve a raise or gain a bonus, which could lead to confusion and dissatisfaction.

Objectives for a Pay Plan