A consultant presenting a group/team incentive plan proposal stresses that the money to be used as incentive rewards will be generated by improved organizational performance. Which of the following principles is at work in such a plan?
A)zero investment
B)pay-as-you-go
C)financial independence
D)self-funding

Question

Quizplus · Accepted Answer

A self-funding incentive plan is one where the rewards are funded by the improved performance of the organization. This means that the money used for the incentives does not come from an external source, and the organization does not need to invest any additional funds into the plan. Instead, the plan is designed to be self-sustaining, with the cost of the incentives being offset by the benefits generated by improved organizational performance. This approach is often used because it encourages employees to work harder and achieve better outcomes while minimizing the financial risk to the organization.

A Consultant Presenting a Group/team Incentive Plan Proposal Stresses That