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The trend is toward a total compensation approach made up of base pay, variable pay, and indirect pay or benefits.
4. Flexibility is an essential ingredient in any compensation plan and can be built using a variable pay approach.
5. Methods for paying employees on the basis of outcome are usually referred to as incentive forms of pay. These include merit pay, individual incentives, team incentives, and organizationwide incentives.
6. The most widely used plan for managing individual performance is merit pay.
7. Individual incentives pay the employee on the basis of units produced or dollar value of sales...
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