Which of the following is true about the level of risk involved with incentive pay?
A)The level of risk decreases as incentive pay represents a greater proportion of total core compensation.
B)The level of risk is lower for higher-level employees than those who are lower in the job structure.
C)The level of risk depends on the extent to which employees control the attainment of a desired goal.
D)The level of risk is dependent on subjective performance appraisals.

Question

Quizplus · Accepted Answer

The level of risk with incentive pay depends on the extent to which employees control the attainment of a desired goal. If employees have little control over achieving the goal, then the level of risk will be higher. A and B are incorrect, and D is not relevant to the level of risk involved with incentive pay.

Which of the Following Is True About the Level of Risk