The guidelines for designing an incentive compensation system that will help drive successful strategy execution include
A)making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package.
B)having a bonus and incentive plan that applies to managers only (employees should generally not be included in incentive pay plans but should have attractive wages and salaries).
C)having an outside wage and salary expert administer the system, so that there is no doubt as to its fairness and impartiality.
D)basing the incentives on group performance rather than individual performance.
E)making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties.

Question

Quizplus · Accepted Answer

Making the payoff for meeting or beating performance targets a major component of the total compensation package will incentivize employees to focus on achieving the organization's strategic goals. This will ensure that the incentive compensation system is aligned with the organization's strategy and will help drive successful strategy execution. The other options are not necessarily best practices for designing an effective incentive compensation system.

The Guidelines for Designing an Incentive Compensation System That Will