Which of the following is NOT a sound guideline for designing a reward and incentive system that helps promote good strategy execution?
A) The reward system must be administered with scrupulous objectivity and fairness.
B) The payoff for meeting or beating performance targets must be a major, not minor, piece of the total compensation package.
C) Any incentive plan should extend to all managers and all employees, not just top management.
D) Ways must be found to reward deserving nonperformers who, for some reason, do not fare well under the incentive system.
E) Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.

Question

Quizplus · Accepted Answer

The guideline stating that ways must be found to reward deserving nonperformers who, for some reason, do not fare well under the incentive system is not a sound guideline. Reward systems should not incentivize nonperformers but rather motivate employees to improve their performance.

Which of the Following Is NOT a Sound Guideline for Designing