Which of the following is true concerning incentive pay?

A) The award is earned only when the predetermined work objective is totally completed.

B) Awards are granted as one-time payments.

C) It motivates employees to be more productive, but does little to control payroll costs.

D) Incentive levels are generally subjective in nature.

Answer:- B) Awards are granted as one-time payments.

The correct answer is ‘Awards are granted as one-time payments.’ Employees may receive incentive pay, a unique form of compensation, to show appreciation for their achievements and to motivate them to keep up their good job.

The rewards are only given once, rather than on a regular basis, in order to motivate the employees to produce their best effort because they are unsure of when they will receive the rewards.

Employee productivity is encouraged by the awards, which are presented based on objective criteria as opposed to subjective ones. Even before a planned job objective is accomplished, they may be given out.