When constructing an incentive scheme:
A) stronger incentives are always better.
B) weaker incentives never result in a strong outcome.
C) weaker incentives might be better if monitoring is difficult.
D) stronger incentives typically work better in a corporate setting.

Question

Quizplus · Accepted Answer

Weaker incentives might be more effective when monitoring is difficult because employees may not be able to see the direct correlation between their performance and the incentive. Therefore, it is important to choose the right type of incentive for the situation, taking into consideration factors like monitoring, employee motivation, and the desired outcome. Stronger incentives may be more effective in a corporate setting, but this is not always the case.

When Constructing an Incentive Scheme