The Top Management at a New Social Media Technology Company

question 39

Multiple Choice

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

• A)Make the performance bonus at least 3 to 4 percent of base salary to have some impact.
• B)Make the performance bonus at least 10 to 12 percent of base salary to have some impact.
• C)Make the performance payoff equal for average and below-average performers.
• D)Set unrealistic performance standards, but with an equally high compensation.
• E)Reward people who work very hard, even if they fall short of achieving performance targets.

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Definitions:

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