If managers increase employee involvement in the design of an incentive compensation system,which of the following will most likely occur?
A) Employees will be more committed to the plan.
B) Managers will spend more time in conflict resolution.
C) Employees' intrinsic drives will be sharply reduced.
D) Managers will be better able to evaluate performance.

Question

Quizplus · Accepted Answer

By involving employees in the design of an incentive compensation system, they are more likely to feel ownership and buy-in to the plan. This can lead to increased commitment and motivation to perform well and earn rewards. It may also lead to better understanding of the performance metrics and how they can be achieved. While some conflict resolution may be necessary, overall employee involvement can lead to positive outcomes for both employees and managers. There is no logical reason to suggest that employees' intrinsic drives will be sharply reduced or that managers will be better able to evaluate performance as a direct result of employee involvement in the design of an incentive compensation system.

If Managers Increase Employee Involvement in the Design of an Incentive