When implementing a team-based compensation plan,a firm would most likely:
A) allow team members to distribute rewards.
B) reward the best performer on each team.
C) assess performance with narrow criteria.
D) use bonuses or noncash rewards.

Question

Quizplus · Accepted Answer

Using bonuses or noncash rewards is the most effective choice when implementing a team-based compensation plan as it encourages teamwork and collaboration rather than promoting individual performance as in option B. Allowing team members to distribute rewards can result in favoritism or bias, while assessing performance with narrow criteria may not capture the full range of contributions that team members make. Bonuses and noncash rewards are flexible and can be tailored to reward team outcomes rather than individual achievements.

When Implementing a Team-Based Compensation Plan,a Firm Would Most Likely