A key assumption behind pay-for-performance compensation is that:
A) the importance of the job needs to be weighed in figuring the incentive.
B) the organization's performance depends on individuals' performance.
C) teams are not suitable "vehicles" for most corporate incentive programs.
D) accurate job evaluations and market surveys are critical to calculate incentives.

Question

Quizplus · Accepted Answer

Pay-for-performance assumes that an individual's performance directly impacts the organization's overall performance. Therefore, incentivizing individual performance is believed to improve overall organizational performance.

A Key Assumption Behind Pay-For-Performance Compensation Is That