A well-designed reward system
A)ties rewards to performance outcomes directly linked to good strategy execution and the achievement of financial and strategic objectives.
B)should be free of elements that induce stress, anxiety, tension, pressure to perform, and job insecurity.
C)puts the primary emphasis on denying rewards to those who fail to perform tasks in the prescribed fashion.
D)emphasizes weeding out employees who are average performers.
E)strives for a 50-50 balance between positive and negative rewards and a 50-50 balance between monetary and nonmonetary rewards.

Question

Quizplus · Accepted Answer

A well-designed reward system should tie rewards directly to performance outcomes that are linked to good strategy execution and the achievement of financial and strategic objectives. This ensures that employees are incentivized to work towards the company's goals and objectives.

B, C, D, and E are incorrect because a well-designed reward system should not induce stress, anxiety, tension, pressure to perform, or job insecurity. It should also not put the primary emphasis on denying rewards or weeding out average performers. Additionally, there is no set ratio for positive and negative rewards or monetary and nonmonetary rewards - it depends on the organization's culture and goals.

A Well-Designed Reward System