good compensation scheme:
A)ties rewards to actions that an agent does not control.
B)ties rewards to actions that an agent controls.(True Answer )Correct
C)will not increase performance in a poor economy.
D)is based on luck.

Question

Quizplus · Accepted Answer

A good compensation scheme ties rewards to actions that an agent controls, as this incentivizes them to perform well and achieve specific goals. Tying rewards to actions outside of their control (option A) can lead to frustration and lack of motivation. A compensation scheme should also be able to increase performance in a poor economy (option C) to ensure that employees are still motivated to perform well despite external factors. Additionally, a compensation scheme based on luck (option D) can be seen as unfair and demotivating, as employees may feel that their performance is not accurately reflected in their rewards.

Good Compensation Scheme