Which of the Following Is Not a Sound Guideline for Designing

question 94

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)Any incentive plan should extend to all managers and all employees,not just top management
• D)Ways must be found to reward deserving nonperformers who,for some reason,do not fare well 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:

Inflation Rate

The frequency at which the overall price of goods and services inflates, reducing the effectiveness of the purchasing capacity.

Nominal GDP

The gross domestic product measured in current prices, without adjustment for inflation, representing the value of all finished goods and services produced within a country's borders in a specific time period.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices, to provide a truer reflection of economic growth.

GDP Deflator

An economic metric that adjusts the nominal GDP figure to account for changes in price levels, providing a more accurate picture of an economy's size and health over time.