Answer to Question 1
Answer: B
Answer to Question 2
Answer: Team-based pay is determined by how well the team performs in the accomplishment of the job. Team incentives have both advantages and disadvantages. On the positive side, firms find it easier to develop performance standards for groups than for individuals. For one thing, there are fewer standards to determine. Also, the output of a team is more likely to reflect a complete product or service. Another advantage is that employees may be more inclined to assist others and work collaboratively if the organization bases rewards on the team's output. When teams perform highly, it is the interaction among team members, not the members themselves, that creates the high performance. If a team member is asked who was responsible for the high performance of the team, he or she would likely say We were and mean it. A potential disadvantage for team incentives relates to exemplary performers. If individuals in this category perceive that they contribute more than other employees in the group, they may become disgruntled and leave.
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