A common way of compensating teams is a ________ system, in which bonuses are based on improvements over a previous performance baseline.
A) commission
B) stock option
C) gain-sharing
D) skill-based

Question

Quizplus · Accepted Answer

The description given in the question best fits the gain-sharing system. This type of compensation incentivizes teams to work together to achieve incremental improvements in productivity or efficiency. By sharing in the gains made over a previous period, team members are motivated to collaborate and seek ways to optimize their performance. Commission and stock options are different types of compensation schemes, and skill-based compensation is focused on individual proficiency rather than team performance.

A Common Way of Compensating Teams Is a ________ System