In incentive pay,performance measures are primarily based on
A)a supervisor's appraisal.
B)individual productivity.
C)company profits.
D)company stock returns.
E)production costs.

Question

Quizplus · Accepted Answer

In incentive pay, performance measures are primarily based on individual productivity rather than a supervisor's appraisal, company profits, company stock returns or production costs. The purpose of incentive pay is to reward employees for their individual performance and encourage them to increase their productivity. Thus, the performance measures used in incentive pay should be directly tied to individual employee performance.

In Incentive Pay,performance Measures Are Primarily Based on