Which of the following terms refers to the practice of linking job performance to compensation?

The practice of linking job performance to compensation is known as merit pay. Merit pay systems are designed to reward employees based on their performance levels, which can help motivate employees to improve their productivity and quality of work. This approach aligns compensation with tangible outcomes and encourages a culture of high performance within an organization.

Merit pay typically involves performance evaluations, where employees receive feedback on their work quality, contributions to team goals, and overall effectiveness. Based on these assessments, employees can receive salary increases, bonuses, or other financial incentives tied directly to their achievements, reinforcing the connection between job performance and compensation.

The other terms mentioned do not reflect this specific relationship. Job classification refers to categorizing jobs into defined groups based on duties and responsibilities, compensatory time pertains to time off granted instead of monetary compensation for overtime worked, and job rotation involves moving employees between different tasks or jobs to enhance their skills and provide variety. Each of these concepts serves different purposes in human resource management and does not directly relate to linking performance with compensation in the manner that merit pay does.