One Drawback to the Split-Award Approach Is That It Pays

question 83

Multiple Choice

One drawback to the split-award approach is that it pays too much to the marginal performer, who, even if his or her own performance is mediocre, at least gets the second, company-based bonus.One way to get around this would be to use the

• A)lump-sum bonus method.
• B)individual award system.
• C)group incentive plan.
• D)individual bonus method.
• E)multiplier method.

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Definitions:

Outplacement Counseling

Support services provided by organizations to help former employees transition to new jobs, offering career guidance, resume advice, and interview preparation.

Differentiation Strategy

A business approach where a company seeks to be unique in its industry along some dimensions valued by customers.

Performance Management

Is the general set of activities carried out by the organization to change (improve) employee performance.

Cost Leadership Strategy

A cost leadership strategy is one that focuses on minimizing the costs as much as possible.