Max Is Studying the New Pay-For-Performance Incentive Plan

Multiple Choice

Max is studying the new pay-for-performance incentive plan.Max realizes that under the new standards if he continues his normal rate of production,which takes a steady effort over the work day with few "slack" times where he can rest,he can continue to earn what he earns now.But if he puts forward maximum effort all day long,which will leave him physically and mentally exhausted by the end of the day,he can earn an extra $10 a day before taxes.Max's current pay is about $30 an hour.Max is making enough money that he is saving for a home down payment..Which of the statements is most likely to be TRUE?

A) Max is likely to continue to exert his typical effort.
B) No incentive pay system is likely to motivate higher effort from Max.
C) If this incentive plan is not effective in motivating extra effort from Max, he is a low-motivation employee whose departure from the firm would be functional.
D) Max is likely to exert maximum effort every day in order to earn this production incentive.