Why Are Incentive Compensation Plans Often Criticized

question 8

Multiple Choice

Why are incentive compensation plans often criticized?

• A)managers may take actions to improve short-run performance only.
• B)managers may take actions to improve long-run performance only.
• C)stock options affect market prices.
• D)they are ineffective in motivating managers.

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Definitions:

Career Dreams

Aspirations or goals that an individual hopes to achieve in their professional life, shaping their motivation and career planning.

Career Functions

Activities and support provided within an organization that contribute to an individual's career growth, including mentoring, training, and networking opportunities.

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The financial or material support of an event, activity, or individual, usually for promotional purposes or to gain visibility in a particular market.

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Accumulated knowledge or skills gained through participation in different work activities over time.