Regarding the building of a variable team-based pay structure, which of the following choices is most true in relation to this guiding principle: "Goals should cover areas that team members can directly affect"?
A) In effective programs, rewards are contingent upon who makes the most sacrifices for the team's goals.
B) Compensation will not motivate employees unless there is a direct line of sight between performance and results.
C) When incentives are exclusively tied to the final profit of a company or group, the connection between performance and reward is strengthened.
D) In effective, variable team-based pay structures, rewards are contingent upon the employee's social status.

Question

Quizplus · Accepted Answer

When setting goals for a team-based pay structure, it is important to ensure that team members have direct control over the areas that the goals cover. This implies that the goals must be specific, measurable, achievable, relevant, and time-bound (SMART goals) and should focus on individual and team performance that directly contributes to the success of the organization. Since compensation will not motivate employees unless there is a direct line of sight between performance and results, it is essential to ensure that employees know what is expected of them and how their performance will be evaluated to determine their rewards. Therefore, choice B is the most true in relation to the guiding principle that "Goals should cover areas that team members can directly affect."

Regarding the Building of a Variable Team-Based Pay Structure, Which