Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers,managers,and the entire organization will be well coordinated.

Question

Quizplus · Accepted Answer

Tying compensation incentives to performance targets can actually increase the likelihood that responsibility centers, managers, and the entire organization are working towards common goals. It provides a clear incentive for achieving specific targets and can help align individual and departmental goals with the overall objectives of the organization.

Tying Compensation Incentives to Performance Targets Decreases the Likelihood That