The Executive Committee at Oak Meteors made the following statement: "We want all of our business developers to be outstanding. For these reasons, we have started the "excellence club," whose membership is limited to those who place in the top ten percent in terms of the dollar value of the deals they complete. The annual goals of each business developer include membership in this club. We also believe in continuous improvement. To meet their annual goals, the business developers also must generate more dollars in sales than they did last year. In order to keep the business developers focused, they have no other annual goals."
Suppose that Oak Meteors institutes a "Super Bonus" program that provides a large cash award for the business developer with the greatest year-to-year increase in revenue. A manager claims that this would encourage business developers to do poorly in one year in order to make it easier to do much better in the subsequent year. All of the following would help address this concern except
restricting eligibility for the "Super Bonus" program to those who achieved their annual goals in the previous year.
changing the "Super Bonus" so that it is awarded only to those who have increased their revenue by a substantial percentage.
offering the "Super Bonus" for the current year's performance and then never offering it again.
including a review panel empowered to disallow the "Super Bonus" for those who have abused the process.
disqualifying all business developers who have earned a negative performance review within the last three years.
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