For Incentive Pay to Motivate Employees to Contribute to the Organization's

question 70

Multiple Choice

For incentive pay to motivate employees to contribute to the organization's success,the pay plans must be well designed.Which of the following statements describes a characteristic of a well-designed plan?

• A) Performance measures are to be linked to the individual's goals.
• B) Employees are given unattainable performance standards.
• C) Employees value the rewards or incentives that are being offered.
• D) Employees are given limited resources to meet their goals.
• E) The pay plan takes into account that employees will accept all goals irrespective of their rewards.

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Definitions:

Merchandise Sold

Pertains to the goods that have been sold to customers by a company during a specific period, often accounted for in the sales revenue section of an income statement.

Accounts Payable

The amount a company owes on short-term debts to its vendors or suppliers.

Investing Activities

Part of the cash flow statement that details cash inflow and outflow related to the purchase and sale of long-term investments and assets.

Financing Activities

Transactions related to changes in the equity and debt of an organization, including issuing shares, paying dividends, and borrowing funds.