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The main argument in favour of performance related pay is that; the company which is strategically aiming at KPI's could link its remuneration against KPIs where performance is valued in line with organizations strategy. This would motivate, bring all into a common goal, etc where in the organization conflicting interests in functionality & responsibility are also part of the business. A well crafted performance related pay would stimulate growth; whereas a poorly crafted pay would be the reason behind internal conflicts & many problems to follow.
Answer is (d) Right and proper to recognize good performance
