________ plans use a compensation mix that balances risk with short-run and long-run incentives to achieve the organization's goals.
A)Benchmark
B)Motivational
C)Well-designed
D)Sensitive Performance
E)Preferred Performance

Question

Quizplus · Accepted Answer

Well-designed plans aim to balance risk with incentives that align with the organization's goals in the short-run and long-run. This involves carefully considering the mix of compensation elements, such as base salary, bonuses, stock options, and benefits, to ensure they motivate employees to perform well while also managing risk. Benchmark plans typically focus on comparing an organization's compensation practices to those of its competitors, motivational plans may be more short-term in nature, and sensitive and preferred performance plans may not always prioritize long-term goals or risk management.

________ Plans Use a Compensation Mix That Balances Risk with Short-Run