The linking of employee compensation to the achievement of measurable business targets is called
A)compensation goal.
B)performance-based compensation.
C)performance target.
D)performance linkage.

Question

Quizplus · Accepted Answer

Performance-based compensation is the linking of employee compensation to the achievement of measurable business targets. Option A, compensation goal, is not specific enough and could refer to any type of compensation plan. Option C, performance target, is similar to performance-based compensation but does not specifically refer to the linking of compensation. Option D, performance linkage, is not a commonly used term for this practice.

The Linking of Employee Compensation to the Achievement of Measurable