Which of the Following Is NOT Characteristic of a Compensation

question 83

Multiple Choice

Which of the following is NOT characteristic of a compensation and reward system designed to help drive successful strategy execution?

• 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) Generous rewards for people who turn in outstanding performances.
• E) A reward system that involves high (say 50 percent of base salary)non-monetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels.

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Definitions:

Production

The process of creating goods or services, involving tasks such as design, raw material procurement, fabrication, assembly, and testing.

Service Provider

A company or individual that offers services to others in exchange for payment, often in sectors like telecommunications, information technology, and healthcare.

Governments

Entities responsible for governing a geographic area and its population, including making and enforcing laws, managing public resources, and providing services to citizens.

Establishing Prices

The process of determining the selling price of goods or services, taking into account factors like costs, market demand, competition, and desired profit margins.