Julie, the HR manager at Forge Corp., wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set. She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios. In this scenario, Julie would be applying the system of
A) merit pay.
B) piecework pay.
C) standard hour pay.
D) commissions.
E) attendance bonus.

Question

Quizplus · Accepted Answer

Julie is using the system of merit pay, which rewards individuals based on their performance and contribution to the organization. This is in contrast to piecework pay, which pays based on the quantity of work produced, standard hour pay, which pays based on the time worked, commissions, which pay based on sales, or attendance bonus, which rewards employees for showing up to work on time.

Julie, the HR Manager at Forge Corp