The study found that participants thought performance should be essential or very important in deciding pay. What might be the positive motivational consequences for average employees if CEO pay is tied to performance?

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Business

Deborah Baird

11 October, 01:21

The study found that participants thought performance should be essential or very important in deciding pay. What might be the positive motivational consequences for average employees if CEO pay is tied to performance?

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Gracie Lindsey · Answer 1

Average Productivity gain might be the positive motivational consequence for an average employee is CEO pay is tied to performance.

Explanation:

CEO pay and performance often don't match up. They earn as much as 100 times as compared to that of an employee. That in itself is demoralizing to the employees and can reduce productivity levels.

Performance appraisal will provide adequate feedback to each person on his or her performance and serve as a basis for modifying or changing behavior toward more effective working habits.

It will also provide data that management will use to assign future tasks and job specifications.

Average productivity gain per employee will happen if CEO pay is tied to performance because of its positive motivational consequences on the thought performance of employees.