Which of the following statements is correct?

Question

Quizplus · Accepted Answer

An incentive system is a method of organizing production which incentivizes workers to produce more efficiently by rewarding them with financial or non-financial rewards such as bonuses or promotions. This mechanism is often used inside firms to increase productivity and performance, and is similar to market-based incentives. Command systems are not limited to military contexts and are also used in other organizations such as hospitals or universities. Selling organizations can indeed use incentive systems, as it is a common way to motivate sales teams to reach their targets. However, a production line may not be the best example of how an incentive system works, as a production line is typically organized in a hierarchical and highly-structured manner, and may not allow for much flexibility or individual incentives.

Which of the Following Statements Is Correct