Which motivational strategy often incorporates financial rewards based on performance?

Which motivational strategy often incorporates financial rewards based on performance?

• A. Job rotation
• B. Bonus plans
• C. Job enrichment
• D. Job decentralization

Answer: (B)

The strategy that incorporates financial rewards based on performance is bonus plans. This approach is designed to motivate employees by providing them with additional compensation when they meet specific performance criteria or exceed their targets. By tying monetary rewards to performance outcomes, organizations aim to incentivize employees to enhance productivity, increase efficiency, and achieve set company goals. Bonus plans can take various forms, such as annual bonuses, performance bonuses tied to individual or team achievements, or profit-sharing arrangements where employees receive a share of the company's profits. This type of motivational strategy is effective because it directly links an employee's financial gain to their contributions, fostering a results-driven culture within the organization. In contrast, job rotation, job enrichment, and job decentralization focus more on the nature of the work or organizational structure rather than financial incentives.

The strategy that incorporates financial rewards based on performance is bonus plans. This approach is designed to motivate employees by providing them with additional compensation when they meet specific performance criteria or exceed their targets. By tying monetary rewards to performance outcomes, organizations aim to incentivize employees to enhance productivity, increase efficiency, and achieve set company goals.

Bonus plans can take various forms, such as annual bonuses, performance bonuses tied to individual or team achievements, or profit-sharing arrangements where employees receive a share of the company's profits. This type of motivational strategy is effective because it directly links an employee's financial gain to their contributions, fostering a results-driven culture within the organization. In contrast, job rotation, job enrichment, and job decentralization focus more on the nature of the work or organizational structure rather than financial incentives.