A ________ pay plan pays for individual performance based on performance appraisal ratings.
A) piece-rate
B) merit-based
C) employee stock ownership
D) profit sharing
E) gainsharing

Question

Quizplus · Accepted Answer

Merit-based pay plans are designed to reward individual performance based on performance appraisal ratings. Piece-rate pay plans pay based on the amount of work completed, employee stock ownership plans offer employees the chance to own company stocks, profit-sharing plans pay based on the company's overall profitability, and gainsharing plans involve employees receiving a portion of the monetary savings resulting from their improved performance.

A ________ Pay Plan Pays for Individual Performance Based on Performance