Question

Souped Inc., a firm that manufactures ready-to-eat soups, offers incentives based on an employee's performance rating and the employee's compa-ratio. Which payment plan is exemplified in this scenario?A) Piecework planB) Merit payC) Standard hour planD) Differential planE) Skill-based plan

Answer 1

Answer: B -Merit Pay

Explanation: Merit pay is a performance based incentive to employees. It is financial in nature which means that an employee might be given a bonus or a pay rise for an outstanding performance.

Merit pay is a good performance compensation policy which helps to boost employees performance and there by increasing a company's overall goals of profit making.

Merit pay is a very good incentive which gives employees a sense of belonging in an organisation. it helps employees boost their moral as they are sure that their efforts will be well compensated by the organisation.