You have been hired as the new director of compensation for a large organization.The existing pay-for-performance system consists of annual bonuses for managerial and professional employees.The system has not been reviewed for over five years.In your review,all of the following would be high-priority focuses of your review EXCEPT
A) Do employees understand how their bonuses are calculated?
B) Do the bonuses link individual performance with organizational objectives?
C) Is the existing bonus system typical in the industry?
D) Are performance measures realistic?

Question

Quizplus · Accepted Answer

The other three focuses are crucial to determining the effectiveness of the pay-for-performance system and need to be reviewed. However, whether the existing bonus system is typical in the industry is not as important as ensuring the system is properly aligned with the organization's goals and employees understand how their bonuses are calculated.

You Have Been Hired as the New Director of Compensation