A feature of an effective incentive pay plan is that it should
A) have performance measures based on employees' requirements.
B) not be provided as a direct percentage of employees' performance.
C) encourage group performance and sideline individual achievements.
D) be the same for all employees in the organization.
E) have performance measures linked to the organization's goals.

Question

Quizplus · Accepted Answer

An effective incentive pay plan should have performance measures linked to the organization's goals. This ensures that the incentives are tied to the success of the company as a whole, rather than individual employee achievements. Having clear measures of success that align with the organization's objectives also provides clarity for employees in terms of what they need to do to earn incentives.

A Feature of an Effective Incentive Pay Plan Is That