An important prerequisite for an effective variable pay plan is referred to as "line of sight." What does this refer to with respect to the employee?
A) Relate daily work to compensation for continual motivation.
B) Relate daily work to the achievement of personal needs.
C) Relate daily work to the achievement of overall corporate goals.
D) Relate daily work to how overall society is impacted.
E) Relate daily work to other employees efforts to ensure equity is achieved.

Question

Quizplus · Accepted Answer

"Line of sight" refers to the ability of the employee to see the connection between their daily work and the achievement of overall corporate goals. This connection is necessary for the employee to be motivated by the variable pay plan, as they can see how their efforts directly impact the success of the company. Option A relates to motivation but does not address the connection to the corporate goals, while options B, D, and E are not directly related to the concept of "line of sight."

An Important Prerequisite for an Effective Variable Pay Plan Is