When organization performance declines,
A) a virtuous circle may be created.
B) performance-based pay plans do not pay off.
C) managers will change the pay practices.
D) employees will work harder to improve performance.

Question

Quizplus · Accepted Answer

Performance-based pay plans may not pay off as intended when organization performance declines. This could be due to a variety of factors such as lack of employee motivation, insufficient resources, or ineffective management. In such cases, managers may need to reassess their pay practices and consider alternative approaches to addressing the underlying issues affecting organizational performance. While employees may work harder to improve performance, this alone may not be sufficient to address the root causes of the decline in performance.

When Organization Performance Declines