The ________ component of compensation is high when sensitive performance measures are available and when monitoring the employee's effort is difficult.
A)salary
B)control
C)motivate
D)incentive
E)benchmark

Question

Quizplus · Accepted Answer

The incentive component of compensation is used when sensitive performance measures are available and when monitoring the employee's effort is difficult. Incentives tie payment to performance, motivating employees to perform better than their usual effort. This is particularly effective when performance is challenging to measure or monitor, as in sales roles or creative positions. Salary focuses on the fixed payment irrespective of the variation in individual performance, while control and benchmark usually emphasize standardization and compliance in employee behavior, respectively. Motivation is a desirable outcome of incentive pay but is not a component of compensation.

The ________ Component of Compensation Is High When Sensitive Performance