The Objectives of Management Compensation, When Compared to the Objectives

question 23

Multiple Choice

The objectives of management compensation, when compared to the objectives used to develop performance measurement systems, are:

• A) More numerous.
• B) Less specific.
• C) Consistent.
• D) Significantly broader in scope.
• E) More specific.

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Definitions:

Quality-Oriented Incentives

Rewards or bonuses given to employees for meeting or exceeding quality standards in their work.

Team Awards

Recognitions or rewards given to a group of employees for their collective performance, achievements, or contributions toward organizational goals.

Group Incentive

A reward system where a team of employees is financially compensated based on the achievement of certain predefined targets or goals.

Employee Stock Ownership Plan

A program that grants employees ownership interest in the company, typically through the allocation of stock.