A payment system that rewards people who meet set targets over a period of time; targets can be on an individual, team, or organizational basis.

A payment system that rewards people who meet set targets over a period of time; targets can be on an individual, team, or organizational basis.

• A. Time rate
• B. Piece rate
• C. Motivation
• D. Performance-related pay

Answer: (D)

Performance-related pay is a form of remuneration that rewards employees for meeting or exceeding pre-set targets over a period. It fits the scenario because the targets can be at the individual, team, or organizational level, and the payoff depends on achieving those targets. Time rate pays a fixed wage per hour, not tied to performance targets. Piece rate pays for each unit produced, which links to output but not necessarily to targets over a period or to different levels (team/organization). Motivation is a broad idea of what drives people, not a specific pay scheme. So, this approach directly ties pay to performance against defined targets, aligning incentives with desired outcomes.

Performance-related pay is a form of remuneration that rewards employees for meeting or exceeding pre-set targets over a period. It fits the scenario because the targets can be at the individual, team, or organizational level, and the payoff depends on achieving those targets. Time rate pays a fixed wage per hour, not tied to performance targets. Piece rate pays for each unit produced, which links to output but not necessarily to targets over a period or to different levels (team/organization). Motivation is a broad idea of what drives people, not a specific pay scheme. So, this approach directly ties pay to performance against defined targets, aligning incentives with desired outcomes.