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

Rewarding nonperformers goes against the purpose of a reward and incentive system, which is to encourage good strategy execution through rewarding good performance. The focus should be on rewarding those who meet or exceed performance targets, not those who do not perform well.

Which of the Following Is Not a Sound Guideline for Designing