Which of the following is NOT characteristic of a compensation and reward system designed to help drive successful strategy execution?
A) Tying incentives to performance outcomes directly linked to good strategy execution and financial performance
B) Keeping the time between achieving the target performance outcome and the payment of the reward as short as possible
C) Making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
D) Providing generous rewards for people who turn in outstanding performances
E) Offering rewards that amount to 3 percent of an employee's total compensation

Question

Quizplus · Accepted Answer

Offering rewards that amount to a specific percentage of an employee's total compensation is not a characteristic of a successful compensation and reward system. The percentage of the reward should be tied to the specific performance outcomes and financial performance, not a predetermined percentage.

Which of the Following Is NOT Characteristic of a Compensation