Question

Lorraine works for a company that does not pay very well. She relies heavily on extra paychecks that her company gives out a couple of times a year. Lorraine relies on what type of pay?

Answer 1

Answer: Bonus pay plan of individual-level performance-based pay

Explanation:

In this scenario, an extrinsic reward used here is the bonus pay plan. An extrinsic reward simply means a reward that is being given to the employee of a particular company after a particular thing has been achieved.

Here, a bonus pay plan of individual-level performance-based pay is being used. A bonus is given to the employee for meeting a particular requirements. Bonus are calculated base on either the percentage of ones wages or salaries or by using a flat rate.