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How the following point is a benefit of Performance related pay?
“It increases supervisory responsibility”
Well, the main objective behind performance related pay is an increase in quality and efficiency.
So let’s take an example for understanding, if managers’ pay are performance related than they will make sure their teams will be more efficient… Ensuring team members are working efficiently, not slacking and giving their best efforts to work. By this the level of supervision increases. This is a benefit for the company as whole as production will be more efficient and employees will be more productive.
I hope that clears it.
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