A pay system designed for non-manual workers where pay increases are given if performance targets are met is called?

• A. Payment by results
• B. Motivators (Herzberg's)
• C. Performance-related pay
• D. Hygiene factors

Answer: (C)

Performance-related pay is a system where pay rises are awarded when targets are met, linking rewards directly to performance. This suits non-manual roles because targets can be clearly defined and measured—things like quality, speed, or customer outcomes—so employees see a direct connection between what they do and what they earn. It helps motivate effort toward achieving those outcomes and aligns individual rewards with organizational goals. It differs from payment by results, which tends to be piece-rate or output-based pay tied to units produced and is more typical of manual labor. Motivators and hygiene factors relate to what motivates or prevents dissatisfaction in a job, not a specific pay structure.