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Which of the following is an example of a business using performance pay? (A) Emily is paid penalty rates for working on a public holiday - HSC - SSCE Business Studies - Question 11 - 2015 - Paper 1
Question 11
Which of the following is an example of a business using performance pay? (A) Emily is paid penalty rates for working on a public holiday. (B) Mike receives a gift... show full transcript
Worked Solution & Example Answer:Which of the following is an example of a business using performance pay? (A) Emily is paid penalty rates for working on a public holiday - HSC - SSCE Business Studies - Question 11 - 2015 - Paper 1
Step 1
Identify the correct option for performance pay
Answer
Performance pay refers to a compensation structure where employees receive additional pay based on their performance or goal achievement. Among the options given:
- Option A relates to penalty rates which are not performance-based.
- Option B describes a non-performance incentive (a gift voucher).
- Option C is about being paid above an agreement level, which may not necessarily relate directly to performance.
- Option D describes a bonus system for meeting a sales target, which directly incentivizes performance.
Thus, the correct answer is (D) Sally’s department receives a bonus for meeting its sales target.