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:

Organic Solidarity

A concept of social cohesion that arises when the people in a society are interdependent, but hold to varying interests and values.

Mechanical Solidarity

A form of social cohesion that arises in traditional societies from a shared culture, kinship, and beliefs, making society function as a cohesive unit.

Morality

Morality encompasses the differentiation of intentions, decisions, and actions between those that are distinguished as proper and those that are improper. It is often guided by cultural, religious, or philosophical principles.

Anomic Suicides

A concept in sociology referring to suicides that occur due to a breakdown in social bonds or norms, often in times of social or economic upheaval.