Which statement is true of a performance bonus?
A) It is designed to reward group performance.
B) It should be re-earned by employees during each performance period.
C) It is rolled into base pay and provided yearly or monthly.
D) It lacks flexibility and hence it is less popular.
E) It is exclusively linked to subjective ratings, rather than objective performance measures.

Question

Quizplus · Accepted Answer

A performance bonus is designed to reward individual performance and should be re-earned by employees during each performance period based on their individual achievements. The bonus is not rolled into base pay and is typically given as a lump sum payment. The bonus may be tied to both subjective and objective performance measures, and it can be flexible in structure and design.

Which Statement Is True of a Performance Bonus