Which of the following is not true concerning performance bonuses?
A)They do not automatically carry over from one time period to the next.
B)Effective bonus systems are based on specific,measurable and attainable goals.
C)They are generally used as an individual incentive,but in some cases can be used for groups.
D)Bonus payment should be paid immediately upon reaching the goal,not based on time.
E)They should be given on an ongoing,annualized basis in order to create entitlement.

Question

Quizplus · Accepted Answer

Performance bonuses should not be given on an ongoing, annualized basis as it creates a sense of entitlement and diminishes the motivation for employees to work towards achieving their goals. It is important to maintain the element of surprise and keep employees motivated to continue performing at their best.

Which of the Following Is Not True Concerning Performance Bonuses