Senior Professional in Human Resources (SPHR) Certification Practice Exam

A company emphasizing pay-for-performance is most likely which type of organization?

1. A hierarchical organization

2. A high-involvement organization

3. A traditional organization

4. A bureaucratic organization

The correct answer is: A high-involvement organization

A company that emphasizes pay-for-performance is most likely a high-involvement organization because it actively engages employees in the decision-making process and aligns their contributions with organizational goals. This type of organization values individual performance and rewards employees based on their achievements and productivity. In a high-involvement organization, there is typically a focus on teamwork, employee empowerment, and creating a culture that encourages employees to take ownership of their work. By linking compensation to performance, the organization motivates employees to excel and contribute meaningfully to its success. This approach contrasts with other types of organizations, such as hierarchical, traditional, or bureaucratic organizations, which often have more rigid structures and may not place as much emphasis on individual performance as the driving force for compensation. These other organizations may rely more heavily on seniority or fixed pay scales rather than a direct connection between performance outcomes and compensation.