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.

---

Definitions:

Dishabituated

The process of responding to an old stimulus as if it were new again, typically after the stimulus has not been presented for a period of time.

Tiny Tots Day Care

A child care service specifically designed for the care and development of young children.

Infants

Very young children, typically under one year of age, who are at the earliest stage of human life.

Repeat An Action

The process of performing the same action or task again, often to practice or reinforce a skill or behavior.