Managers use pay to influence employee behaviours and to Multiple Choice encourage free riding improve organization performance generate revenue for innovation cut costs of production

The correct answer is **improve organization performance**.<br /><br />Here's why the other options are incorrect:<br /><br />* **Encourage free riding:** Free riding is when individuals benefit from a collective effort without contributing their fair share. Pay structures should discourage this behavior, not encourage it.<br />* **Generate revenue for innovation:** While innovation can lead to increased revenue, pay itself doesn't directly generate revenue. Pay structures can *incentivize* innovation, but they don't create revenue on their own.<br />* **Cut costs of production:** While controlling labor costs is important, simply cutting pay isn't a sustainable or effective way to improve overall performance. It can lead to decreased morale, lower productivity, and higher turnover.<br /><br />Managers use pay strategically to motivate employees, reward performance, attract and retain talent, and ultimately drive better organizational outcomes. A well-designed compensation system aligns individual goals with organizational objectives, leading to improved performance.<br />