A Well-Designed Reward System

question 90

Multiple Choice

A well-designed reward system

• A) is focused on "what to achieve" to be rewarded as opposed to "what to do" and is management's most powerful tool for gaining employee commitment to superior strategy execution.
• B) should be free of elements that induce stress,anxiety,tension,pressure to perform,and job insecurity.
• C) puts the primary emphasis on denying rewards to those who fail to perform tasks in the prescribed fashion.
• D) emphasizes weeding out employees who are consistently low performers.
• E) strives for 50-50 balance between positive and negative rewards and 50-50 balance between monetary and nonmonetary rewards.

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Definitions:

Vital Inputs

Crucial resources or components required for the production process or for providing a service.

Homogenous Inputs

Inputs or resources used in production that are of the same kind and interchangeable, contributing to uniformity in the manufacturing process.

IO Perspective

Refers to the Industrial Organization perspective, which examines the behavior of firms, market structures, and their interactions within an industry.

Firm's Profitability

a measure of how effectively a company generates profit compared to its revenues, indicating its financial health and sustainability.