Read each description of a different pay-for-performance (PFP) situation. Then, select the PFP plan name that most accurately fits the description given.

Question 13 options:

12345678	Dalton, Alexander, and Charlie work at a sneaker manufacturing plant. Their manager has informed them that they will be eligible for a performance pay-out if they can reduce shoe leather waste by 15% from last year's standard. Management's goal is that employee teams are encouraged to think of new processes or novel steps in the manufacturing process that will lead to the reduction of scrap leather.
12345678	Felix, Alyssa, Milo, and Reese work for a regional accounting firm as tax associates. If their firm hits its growth goals for tax season, then they can expect an immediate cash payout of 3% of their annual salary.
12345678	Colton is an auto mechanic working in his family's auto body shop. It takes him about 30 minutes to complete an oil change and he gets paid $15 for the completed job. Colton's father has told him that he will pay him an additional $10 for every oil change that Colton completes in 20 minutes or less.
12345678	Seamus works as a customer service representative at a local branch of a national bank. One afternoon, he effectively dealt with a situation in which a client's funds had erroneously been transferred to her savings account instead of her checking account, causing her to bounce a mortgage payment check. Seamus worked with the client to call the mortgage company and arrange a same-day transfer of funds and then waived fees for the client as an apology from the bank. Seamus's manager was so impressed that he called the national headquarters, who promptly authorized a $2,500 payment to Seamus for exceptional customer service.
12345678	Alice works at a digital marketing firm in Philadelphia. She had an exceptionally productive year. At her annual performance review, she received a pay-out of $5,000 as a result of her hard work and strong performance.
12345678	Josie and Caleb work for a publicly-traded pharmaceutical firm. They were recently granted the ability to purchase company stock each pay period at a cost below the market rate. So, for example, when they were paid this past Friday, the company stock closed at $48.98/share and they were able to purchase shares at $45.99/share.
12345678	Saahas has been employed by his firm for two years. His starting salary was $50,000 and after his first annual performance review, he received an 8 % raise to his annual salary. After his second annual review, he received an additional 7% raise. As a result of these post-review raises, his salary is now $57,780.
12345678	Chris, Blake, and Ryan are a team of law associates reporting to the same law partner. If they can bring their team's billable hours up by 15% and if they each successfully settle three cases in the next 9 months, then will each earn an additional 12% of their base monthly pay.

1.

Merit pay

2.

Merit bonus

3.

Spot award

4.

Individual incentive plan

5.

Gain-sharing plan

6.

Profit-sharing plan

7.

Team-based incentive

8.

Employee stock ownership plan