Fairly easy

Which payment is most directly linked to an employee's measured performance?

Correct answer: A. Merit pay

  • A. Merit pay
  • B. Housing allowance
  • C. Medical insurance
  • D. Paid annual leave

Explanation

Merit pay is a financial reward based on assessed individual performance. Housing, insurance and paid leave are benefits or indirect compensation rather than direct performance-linked pay.

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About Human Resource Management

Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.

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80 free Human Resource Management MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.

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Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

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