The Guidelines for Designing an Incentive Compensation System That Will

question 113

Multiple Choice

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

• A)making the performance payoff a major, not minor, piece of the total compensation package.
• B)having incentives that apply to the management team (employees should generally not be included in incentive pay plans but should have attractive wages and salaries).
• C)having an outside wage and salary expert administer the system so there is no doubt as to its fairness and impartiality.
• D)basing the incentives on group performance rather than individual performance.
• E)making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties.

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Definitions:

Rods

Photoreceptor cells in the retina of the eye that are highly sensitive to light and enable vision in low-light conditions.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and provide the ability to perceive color and fine detail.

Wavelengths

The distance between successive crests of a wave, typically used in the context of electromagnetic waves, sound waves, or other wave phenomena.

Visual Receptors

Cells located in the retina of the eye that are sensitive to light and enable vision.