In the process of designing incentives, managers should make sure that
A) all the employees are paid the same amount.
B) even the lowest performing employees are rewarded.
C) employees focus only on completing the task quickly.
D) employees believe that the pay plan is fair.
E) they hire employees who consider earning money as the sole reason to perform well.

Question

Quizplus · Accepted Answer

It is important for managers to ensure that employees perceive the pay plan as fair to avoid demotivating them. This can be achieved by providing clear and transparent criteria for earning rewards and ensuring that rewards are distributed fairly. All employees should not be paid the same amount as this does not take into account differences in performance and can lead to resentment among high performing employees. Rewarding low performing employees may not be effective in incentivizing improved performance as it can create a sense of entitlement without the need to improve. Employees should focus on completing the task both quickly and effectively, not just quickly. Hiring employees who are solely motivated by money can lead to short-term motivation and may not be sustainable in the long run.

In the Process of Designing Incentives, Managers Should Make Sure