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DSST Human Resource Management Exam Prep

Category - Free DSST HR Test Prep

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What type of compensation system is directly related to the employee's individual performance?

An incentive pay plan
A merit pay plan
A pension plan
All of the above

Explanation

Answer - B - A merit pay plan is directly related to the employee's individual performance.

Key Takeaway: A performance based pay system, where an individual`s pay is determined solely by his or her individual performance, is also called a merit based pay system.

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