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Designing a Reward and Incentive System That Helps Promote Good

Question 72

Multiple Choice

Designing a reward and incentive system that helps promote good strategy execution would NOT be characterized by


A) being administered with scrupulous objectivity and fairness.
B) minor payoffs as a piece of the total compensation package.
C) extending the program to all managers and all employees, not just top management.
D) rewarding nonperformers who, despite expending tremendous effort, have not fared well in achieving the benchmarks under the incentive system.
E) ensuring that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.

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