Organizational goals can impact choice of incentive plans.

Question

Quizplus · Accepted Answer

Organizational goals can impact the design and choice of incentive plans as they should be aligned with the goals that the company wants to achieve. For example, if the goal is to increase sales, then a commission-based incentive plan might be more effective than a simple salary-based plan. Similarly, if the goal is to encourage teamwork and collaboration, a team-based incentive plan might be more appropriate. Therefore, organizational goals should be considered when designing and selecting incentive plans.

Organizational Goals Can Impact Choice of Incentive Plans