The Tangerine Hair Salon classifies its stylists in terms of four levels: protégé, studio, senior, and master. At each level, customers pay different prices, and the stylists earn different wages. Stylists must meet particular criteria to advance from one level to the next level. This is an example of:
A)pay-for-performance based on piece rate.
B)pay-for-performance based on promotion.
C)job-specific incentives based on human capital.
D)job-specific incentives based on promotion.

Question

Quizplus · Accepted Answer

This is an example of pay-for-performance based on promotion, as stylists advance to higher levels (and thus higher pay and different job responsibilities) based on meeting specific criteria.

The Tangerine Hair Salon Classifies Its Stylists in Terms of Four