Most employees at Sterling Enterprises work on a team.The firm is considering the implementation of a pay for performance plan.Which of the following would be the most likely challenge of such a plan?
A) Establishing an HR scorecard for each team
B) Isolating individual control over work processes
C) Separating individual contributions from team contributions
D) Creating a psychological contract between teams and the firm

Question

Quizplus · Accepted Answer

The most likely challenge of implementing a pay for performance plan in a team-based environment is separating individual contributions from team contributions. Pay for performance plans typically reward individual performance, but in a team-based environment, it can be difficult to determine the extent of an individual's contribution versus the team's overall performance. It may also lead to a competitive rather than collaborative team environment. Establishing an HR scorecard for each team and creating a psychological contract between teams and the firm are possible strategies to help address this challenge, but they do not directly address the issue of separating individual contributions from team contributions. Isolating individual control over work processes is not a relevant challenge in this situation.

Most Employees at Sterling Enterprises Work on a Team