Question 1

A reward system that accentuates positive rewards for good performance

Accepted Answer

The statement highlights the advantages of using a positive reward system, as it promotes cooperation and enthusiasm among employees. It also suggests that negative reward systems may be counterproductive in motivating employees. The statement does not suggest that the success of a positive reward system depends on the strength of organizational culture or monetary incentives.

Question 2

Which of the following is NOT characteristic of a compensation and reward system designed to help drive successful strategy execution?

Accepted Answer

Offering rewards that amount to a specific percentage of an employee's total compensation is not a characteristic of a compensation and reward system designed to drive successful strategy execution. The percentage of the reward can vary and is not a determining factor in the effectiveness of the system. The other choices listed are all important characteristics of a successful compensation and reward system.

Question 3

Which of the following is NOT likely to be effective in trying to gain employees' wholehearted commitment to good strategy execution?

Accepted Answer

Enforcing rules with the use of fines may create a negative environment and discourage employee commitment. The other options all focus on positive reinforcement and creating an environment that encourages commitment to the company's strategy execution.

Question 4

Which of the following is NOT a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

Accepted Answer

Rewarding nonperformers goes against the purpose of a reward and incentive system, which is to encourage and reward good performance. It sends the wrong message and undermines the credibility of the system, and can demotivate high-performing employees who feel that their efforts are not being recognized or appreciated.

Question 5

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

Accepted Answer

To attract ambitious employees, the top management should offer a performance bonus that is significant enough to make a difference in their earnings. A bonus of 10 to 12 percent of base salary would be a strong incentive for employees to work hard and achieve their goals. Offering an equal performance payoff for average and below-average performers would not be effective in attracting ambitious employees who want to be rewarded for their hard work. Unrealistic performance standards are likely to lead to frustration and demotivation among employees. Additionally, rewarding people who work hard but fall short of achieving performance targets may lead to a sense of entitlement and demotivation among high performers who feel that they are not being appropriately rewarded for their achievements.

Question 6

Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically

Accepted Answer

Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution usually entail positive rewards for meeting or exceeding performance targets, but also impose negative consequences when actual performance falls short of the target. This is to encourage employees to perform to the best of their abilities and to hold them accountable for their performance, which ultimately contributes to good strategy execution.

Question 7

A well-designed reward system

Accepted Answer

A well-designed reward system should be tied to performance outcomes that are directly linked to good strategy execution and the achievement of financial and strategic objectives. This ensures that employees are motivated to perform tasks that contribute to the overall success of the organization.

Question 8

An important consideration in designing a strategy-supportive reward system is to

Accepted Answer

Nonmonetary rewards and recognition can be an effective way to motivate employees and create a positive work environment without necessarily increasing costs for the company. Choosing rewards that align with the company's goals and values can also help focus employees' attention on priorities that will drive growth and success. Wage and salary increases may be one component of a reward system, but they should not be the only focus.

Question 9

From the standpoint of promoting successful strategy execution, it is important that the firm's motivation and reward system

Accepted Answer

Accentuating positive rewards while also carrying out the "up-or-out" policy for performance that does not meet expectations promotes successful strategy execution by motivating employees to perform well and strive for excellence, while also ensuring that underperformance is not rewarded. This creates a culture of accountability and high performance, which is necessary for executing successful strategies.

Question 10

A motivation and incentive system that is aimed at spurring stronger employee commitment to good strategy execution

Accepted Answer

The answer of A motivation and incentive system that is...

Question 11

To create a strategy-supportive system of rewards and incentives, a company must

Accepted Answer

A strategy-supportive system of rewards and incentives should focus on rewarding employees for achieving results rather than just performing their assigned tasks dutifully. This approach encourages employees to go the extra mile and strive for excellence in their work. By tying rewards to specific outcomes, the company can motivate employees to work towards achieving strategic goals.

Question 12

The president of a specialty bakery decided to introduce nonmonetary incentives to enhance employee motivation and spur strategy execution. When her staff presented with some ideas, she chose all of the following EXCEPT

Accepted Answer

Eliminating perks and fringe benefits, such as maternity leave and onsite child care, would not enhance employee motivation but rather demotivate employees. The other options listed are all valid ways to introduce nonmonetary incentives to enhance employee motivation and spur strategy execution.

Question 13

Reward and incentive systems serve as a(n)

Accepted Answer

The answer of Reward and incentive systems serve as a(n)
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Question 14

The strategic role of a company's reward system is to

Accepted Answer

The strategic role of a company's reward system is to enlist employees' commitment to successful strategy execution by rewarding them, both monetarily and non-monetarily, for their valuable contributions. This ensures that employees feel valued and motivated to contribute their best to the organization's success. It also aligns individual goals with organizational goals, leading to better performance and overall success. Option A is only one aspect of the reward system, while options B, D, and E do not capture the strategic role of the reward system in promoting organizational goals.

Question 15

In trying to gain employees' wholehearted commitment to good strategy execution and operating excellence, managers are well advised to use all of the following incentives EXCEPT

Accepted Answer

Withholding information from employees about financial performance, strategy, and competitors' actions can lead to a lack of understanding and motivation among employees. It is important for employees to have a clear understanding of the company's goals and performance in order to feel invested in the success of the organization. Therefore, this should not be used as an incentive.

Question 16

The more a manager understands what motivates subordinates and the more he or she relies on motivational incentives as a tool for achieving the targeted strategic and financial results the

Accepted Answer

When a manager understands what motivates subordinates and relies on motivational incentives, it leads to greater employee commitment to day-by-day strategy execution and achievement of performance targets. This increased commitment can improve overall performance and help the company stay competitive in the industry.

Question 17

The first principle in designing an effective compensation system and the most dependable way to keep people focused on strategy execution and the achievement of performance targets is to

Accepted Answer

Rewarding and recognizing employees who meet or exceed performance targets is a direct way to align compensation with strategy execution and performance achievement.

Question 18

A no-pressure/no-adverse-consequences work environment does not necessarily lead to

Accepted Answer

A no-pressure/no-adverse-consequences work environment may not necessarily lead to superior strategy execution or operating excellence as there may be a lack of urgency and accountability. Without a sense of urgency or consequences, employees may not be motivated to work harder or strive for better results.

Question 19

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

Accepted Answer

Making the performance payoff a major, not minor, piece of the total compensation package ensures that employees are motivated to perform well in order to receive the incentive. This drives successful strategy execution by aligning employee behavior with organizational goals.

Question 20

Enlisting employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives is best done by

Accepted Answer

Resourceful and effective use of motivational incentives, both monetary and nonmonetary, is the best way to enlist employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives. People work hard and are motivated when they are recognized and rewarded for their efforts. Monetary incentives like bonuses and stock options, and nonmonetary incentives like employee recognition programs and opportunities for advancement, go a long way in motivating employees to work towards achieving the company's strategic priorities and financial objectives.

Quiz 11: Managing Internal Operations: Actions That Promote Good Strategy Execution