The Guidelines for Designing an Incentive Compensation System That Will

question 81

Multiple Choice

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

• A) making the performance payoff tiered,based on the actual performance level achieved (that is,for meeting or beating performance targets 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 non-monetary incentives and rewarding people for diligently performing their assigned duties.

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Definitions:

Deception

The act of misleading or deceiving others as a strategy, either through lying, presenting false information, or by concealing the truth.

Confederate

refers to a person, group, or nation united with others for a common purpose, often used in historical contexts such as the Confederate States of America during the American Civil War.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations in the independent variable.

High-Calorie Treat Food

Edible items that are often rich in sugars and fats, offering a significant amount of calories but usually lacking in nutritional value.