Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically
A) use only positive rewards and never involve the use of tension, fear, job insecurity, stress, or anxiety.
B) strike a middle ground-entailing decidedly positive rewards for meeting or beating performance targets but also imposing sufficiently negative consequences when actual performance falls short of the target.
C) aim at creating a no-pressure/no-adverse-consequences work environment.
D) entail paying the highest wages and salaries in the industry and also stressing non-monetary rewards for high-performing employees.
E) put top priority on making employees happy and secure in their jobs.

Question

Quizplus · Accepted Answer

Motivational and incentive compensation practices aim to balance positive rewards for meeting or exceeding targets with negative consequences for falling short of them. This approach creates a sense of accountability among employees and promotes a results-oriented work culture. It is believed to be a more effective approach than withholding incentives altogether or creating a no-pressure work environment.

Motivational and Incentive Compensation Practices That Aim at Winning the Commitment