Pay for Performance
Performance-related pay is money paid to someone relating to how well one works.
This standards-based system is used for evaluating employees and setting salaries by
many employers. Standards-based methods have been in de facto use for centuries among
commission-based sales staff: they are paid more for selling more, and low performers do not
earn enough to make keeping the job worthwhile even if they manage to keep the job.
In addition to motivating the rewarded behavior, standards-based methods can provide a level
of standardization in employee evaluations, which can reduce fears of favoritism and make the
employer's expectations clear.Employees would be secure in knowing that their performance
was evaluated objectively according to the standard of their work instead of the whims of a
supervisor, or against an ever-climbing average of their group. - Source Wikipedia