Julianna,the HR manager at Hudson Corp. ,wants to ensure that incentive pay rewards the individuals who contribute the most to the organization and whose contributions have grown since their pay rates were originally set.She determines that she can best accomplish these goals by paying an incentive amount based on individuals' performance ratings and compa-ratios.In this scenario,Julianna would be applying the system of
A) merit pay.
B) piecework pay.
C) standard hour pay.
D) commissions.
E) attendance bonus.

Question

Quizplus · Accepted Answer

Merit pay is a system in which individuals are rewarded based on their performance and contribution to the organization. In this scenario, Julianna is using performance ratings and compa-ratios to determine incentive pay, which is a typical approach to merit pay. This system is designed to reward the individuals who have shown the most growth since their pay rates were set and have made the greatest contribution to the organization. The other pay systems mentioned in the options (piecework pay, standard hour pay, commissions, and attendance bonus) do not take into account individual performance and contribution to the same extent as merit pay. Therefore, the best choice in this scenario is A) merit pay.

Julianna,the HR Manager at Hudson Corp