Which of the Following Is NOT a Sound Guideline for Designing

question 30

Multiple Choice

Which of the following is NOT a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

• A) The reward system must be administered with scrupulous objectivity and fairness.
• B) The payoff for meeting or beating performance targets must be a major, not minor, piece of the total compensation package.
• C) The incentive plan should extend to all managers and all employees, not just top management.
• D) The reward system must reward nonperformers who, despite expending tremendous effort, have not fared well in achieving the benchmarks under the incentive system.
• E) Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.

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Definitions:

Master Production Schedule

A detailed plan that outlines exactly what products and quantities will be produced and at what time to meet customer demand.

Phantom Bills

Artificial or virtual bills of materials used in manufacturing and inventory management to simplify complex assemblies and their processes.

Material Requirements Plans

A planning and inventory control system used to manage manufacturing processes by determining material requirements and schedules.

Planned Order Releases

Instructions to start the manufacture, ordering, or delivery of items in a specific period, in accordance with the production schedule.