Incentive compensation is MOST suited to:
A)all centralized organizations.
B)centralized organizations where the employees are skilled and empowered.
C)all decentralized organizations.
D)decentralized organizations where the employees are skilled and empowered to react to conditions and make decisions.

Question

Quizplus · Accepted Answer

Incentive compensation is best suited for decentralized organizations where skilled and empowered employees can react to conditions and make decisions. This is because incentive compensation is designed to motivate employees to perform at their best by providing incentives for meeting or exceeding performance goals. In a decentralized organization with skilled and empowered employees, incentive compensation can provide a strong motivational tool for driving performance and achieving organizational goals.

Incentive Compensation Is MOST Suited To