Home » Downloads » Performance- based pay

Performance- based pay

Performance- based pay
What are the advantages and disadvantages of performance-based pay? Explain why employees in an organization should or should not earn pay based on performance
………………..Answer Preview…………………

Performance- based pay

            Pay for performance is an employee compensation policy based on their level of productivity. Many organizations usually tie their employee salaries to their performances. This can be done partially or fully. The use of this philosophy has both advantages and disadvantages to organizations (Price, 2007).

Advantages

            One of the advantages associated with this payment structure is that employees are less supervised. Here, employees know that their salaries are tied to their performances……………

APA
238 Words