Effective divisional incentive compensation plans must induce individual behavior compatible with increasing which of the following?

Question

Quizplus · Accepted Answer

Effective divisional incentive compensation plans should induce individual behavior that is compatible with increasing the firm's wealth, as this aligns the interests of the employees with those of the organization. Inducing behavior that increases suppliers' or customers' wealth is not a primary objective for the firm's incentive compensation plans. The term "employees' agency wealth" is unclear and does not make sense in the context of the question.

Effective Divisional Incentive Compensation Plans Must Induce Individual Behavior Compatible