A Compensation and Reward System Designed to Help Drive Successful

question 29

Multiple Choice

A compensation and reward system designed to help drive successful strategy execution does NOT normally encompass

• A)tying incentives to performance outcomes directly linked to good strategy execution and financial performance
• B)keeping the time between achieving the target performance outcome and the payment of the reward as short as possible
• C)making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
• D)providing generous rewards for people who turn in outstanding performances
• E)offering rewards that amount to 3 percent of an employee's total compensation

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Definitions:

Low Cost

A strategy or condition of minimizing expenses to offer products or services at a competitive price point.

Focus Strategy

A competitive strategy where a company chooses to serve a particular segment or group of segments within a market, tailoring its products or services to better satisfy the specific needs of those segments.

Service Productivity

A measure of the efficiency of a service operation, typically calculated as the ratio of outputs (services provided) to inputs (resources consumed) in rendering the service.

Flexible Manufacturing System

A system that allows for the easy adaptation of the production equipment and processes to manufacture different types of products or change production volumes in response to market demands.