Which of the Following Is Not Characteristic of a Compensation

question 58

Multiple Choice

Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?

• A)tying incentives to performance outcomes directly linked to good strategy execution and financial performance
• B)keeping the time between achieving the target performance outcome and the payment of the reward as short as possible
• C)making sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
• D)generous rewards for people who turn in outstanding performances
• E)a reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels

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Definitions:

Monopolistically Competitive

A scenario where numerous companies compete in the same industry by offering slightly unique products or services, giving consumers choices.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly as its price changes.

Industry Entry

The process by which a new competitor enters an existing market, often influenced by barriers to entry and initial costs.

Price Elasticity

A measure of how much the demand for a product changes in response to a change in price, indicating the sensitivity of consumers to price changes.