Which of the following compensation policies is most likely to enhance a firm's ability to pursue a low-cost strategy?

Question

Quizplus · Accepted Answer

Awarding employees bonuses that are equal to 50% of the total cost savings achieved based on employee suggestions and initiatives is most likely to enhance a firm's ability to pursue a low-cost strategy. This compensation policy incentivizes employees to creatively find ways to reduce costs and improve operating efficiency, which directly aligns with a low-cost strategy. The other options do not directly incentivize cost reduction efforts or may focus on factors unrelated to cost reduction.

Which of the Following Compensation Policies Is Most Likely to Enhance