Giving different rewards to groups with similar performance evaluations is known as what?

• A. Differential reward bias
• B. Reward disparity
• C. Discriminatory compensation
• D. Performance reward discrimination

Answer: (D)

Giving different rewards to groups with similar performance evaluations signals discrimination in how rewards are allocated. When performance is effectively the same, unequal pay or rewards point to biased decision-making in the compensation process. The term that most directly captures this scenario is performance reward discrimination, because it specifies that the discrimination occurs in the reward given for performance. Other phrases may describe bias or disparities in rewards in general, but they don’t pinpoint the act of discriminating in the rewards tied to comparable performance as clearly.