Which compensation method aligns with rewarding high performance in an organization?

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

The compensation method that aligns with rewarding high performance in an organization is cash bonuses. Cash bonuses are typically used as a direct financial incentive that is tied to individual, team, or organizational performance. This form of compensation encourages employees to strive for excellence by directly linking their efforts and contributions to rewarding results. When employees perform well and exceed their targets, they receive bonuses that recognize their achievements, thereby motivating them to maintain or improve their performance.

In contrast, base salary, fixed pay, and salary increments do not necessarily provide the same level of incentive for high performance. Base salary and fixed pay are often consistent and do not fluctuate based on performance metrics, meaning they may not effectively motivate employees to excel. Salary increments, while they may occur as a reward for over time, are usually predetermined and do not specifically correlate with performance outcomes in the short term, making them less effective in driving immediate performance enhancements.

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