Which of the Following Is NOT an Advantage of an Incentive

question 65

Multiple Choice

Which of the following is NOT an advantage of an incentive pay program?

• A) Incentives focus employee efforts on specific performance targets.
• B) Incentives are a way to increase equity and justice in an organization.
• C) Incentive payouts are fixed costs linked to the achievement of results.
• D) Incentives are a means to reward or attract top performers when salary budgets are low.

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Definitions:

Normative Economic Statements

Assertions about economic outcomes or policies that incorporate judgments about what is desirable or undesirable, reflecting values and norms rather than hard facts.

Standard of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographic area.

Equal Distribution

The equitable allocation of resources, income, or assets among all members of a society or group.

Income

The total money received by an individual or household over a specified time period, including wages, salaries, benefits, and other earnings.