Question

When a company prefers to base salary on performance, in the absence of objective performance measures, it uses a(n) _____ which is based on ratings given by managers.

Answer 1

merit pay

Step-by-step explanation:

Based on the information provided within the question it can be said that the company is using a merit pay system. Like mentioned in the question this is a form of deciding how much an employee should be getting paid in regards to their performance, and is usually determined through employer-employee review meetings in which they discuss how the employee has been doing. Which is why it is sometimes referred to as pay-for-performance.