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Performance related pay

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Performance related pay

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • November 27, 2020 at 2:58 pm #596724
    Avatarapplessauce
    Member
    • Topics: 85
    • Replies: 65
    • ☆☆

    Sir for performance related pay, the kaplan textbook says that piecework is categorized under PRP

    However there was this question that i found that asked what performance related pay involves

    I was confused with these 2 options

    Option C: Rewarding employees on the basis of the amount of work they have
    done

    Option D: Rewarding employees for achieving agreed personal targets

    Sir I don’t understand how D is the correct answer
    Isn’t it supposed to be B because Performance related pay is based on the performance of a worker. I.e, isn’t performance directly linked with output because piecework is categorized under Performance related pay

    November 27, 2020 at 5:43 pm #596748
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    It is difficult for me to give an exact answer without seeing the whole of the question.

    However for option C, just taking more time working does not mean that they are actually producing any more – they might just be doing things slowly. Piecework is based on what they actually manage to produce,

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