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) The incentive plan should extend to all managers and all employees, not just top management.
D) Ways must be found to reward deserving non-performers 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

It is not a sound guideline to reward deserving non-performers. The purpose of an incentive system is to motivate and reward high-performing employees, not to reward those who do not meet performance standards. It is important to address performance issues separately and not include them in the reward and incentive system.

Which of the Following Is Not a Sound Guideline for Designing