The guidelines for designing an incentive compensation system that will help drive successful strategy execution include:
A) making the performance payoff tiered,based on the actual performance level achieved (that is,for meeting or beating performance targets a major,not minor,piece of the total compensation package).
B) having incentives that apply to the management team (employees should generally not be included in incentive pay plans but should have attractive wages and salaries).
C) having an outside wage and salary expert administer the system so there is no doubt as to its fairness and impartiality.
D) basing the incentives on group performance rather than individual performance.
E) making minimal use of non-monetary incentives and rewarding people for diligently performing their assigned duties.

Question

Quizplus · Accepted Answer

Tiered compensation systems provide a greater reward for achieving higher levels of performance, which can motivate employees to strive for better results.

Answer: D 
 Group-based incentives can encourage collaboration and teamwork, which can be important for achieving strategic goals.

Answer: E 
 Non-monetary incentives, such as recognition programs or opportunities for growth and development, can be valuable for motivating employees to perform to the best of their abilities. Additionally, employees should be rewarded for performing their assigned duties well, as this is the foundation for achieving overall success.

Therefore, the best choices are A, D, and E.

The Guidelines for Designing an Incentive Compensation System That Will