Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.

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Management must be careful to ensure that incentive payments are viewed as a reward for exceptional performance, rather than an entitlement or expected part of compensation. By setting clear performance criteria and communicating the purpose and goal of the incentive program, management can promote a positive and motivating atmosphere for employees.

Management Must Be Careful to Ensure That Incentive Payments Are