What are characteristics of the best incentive compensation plans? Multiple select question.They are agreed on by both employees and managers.They involve generally unattainable stretch goals.They link rewards to performance.They are designed to meet company, not employee, needs.
Question
What are characteristics of the best incentive compensation plans? Multiple select question.They are agreed on by both employees and managers.They involve generally unattainable stretch goals.They link rewards to performance.They are designed to meet company, not employee, needs.
Solution
The characteristics of the best incentive compensation plans are:
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They are agreed on by both employees and managers: This ensures that both parties are satisfied with the plan, leading to increased motivation and productivity.
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They link rewards to performance: This ensures that employees are motivated to perform at their best, as they know that their efforts will be rewarded.
The other two options are not characteristics of the best incentive compensation plans.
Incentive plans should not involve generally unattainable stretch goals, as this can demotivate employees. If the goals are perceived as unattainable, employees may not see the point in trying to reach them.
Similarly, while incentive plans should align with company needs, they should also meet employee needs. If the plan only meets the company's needs, employees may feel undervalued and unmotivated. A good incentive plan balances the needs of both the company and the employees.
Similar Questions
The goal of an incentive compensation plan is to ______.Multiple choice question.punish employees who do not work hardprovide a simple mechanism for paying employeesencourage employees to be more autonomousmotivate employees to work harder for more money
Which statement about incentive compensation plans is true?Multiple choice question.They are easier to administer than monthly salaries.They ultimately give employees little motivation to work hard.A commission-based plan is most effective in almost all cases.No one plan will boost the performance of all employees.
To be successful, an incentive compensation plan must be ______.Multiple choice question.originalcomplexpercentage-basedmeasurable
What type of incentive compensation plan involves the distribution of a portion of the company's profits to employees?Multiple choice question.Pay for knowledgeCommissionPiece rateProfit sharing
For a general sense of how one organization's monetary incentives relate to other organizations in the same industry, managers can compareMultiple Choicepay levels.pay structures.performance appraisals.benefit plans.employee perks.
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