Managing-Human-Capital Exam Dumps | What is an advantage of a pay-for-performance plan?

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Question 4/24

What is an advantage of a pay-for-performance plan?

A. It rewards those who are most knowledgeable.

B. It connects performance with intrinsic motivation.

C. It recognizes the most tenured employees.

D. It provides a positive reinforcement method.

Correct Answer: D

A pay-for-performance plan is advantageous because it provides a method of positive reinforcement, which directly links an employee's compensation to their performance. This system incentivizes employees to achieve high performance by rewarding them with financial bonuses or raises based on their achievements.
Positive reinforcement encourages desirable behaviors and high productivity, aligning individual performance with organizational goals.
References
* Managing Human Capital Textbook
* "Pay for Performance: Evaluating Performance Appraisal and Merit Pay" by George T. Milkovich and Alexandra K. Wigdor
* SHRM (Society for Human Resource Management) guidelines on pay-for-performance plans

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