An incentive system in which an organization links pay increases to ratings on performance appraisals is referred to as
A) commissions.
B) the Scanlon plan.
C) merit pay.
D) gainsharing.
E) profit sharing.

Question

Quizplus · Accepted Answer

This is a clear description of merit pay, which links pay increases to performance ratings. Commission is a type of pay structure based on sales, while the Scanlon plan, gainsharing, and profit sharing are all different types of group incentive systems.

An Incentive System in Which an Organization Links Pay Increases