The guidelines for designing an incentive compensation system that will help drive successful strategy execution include _________.

Question

A) making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package.
B) having a bonus and incentive plan that applies to managers only (employees should generally not be included in incentive pay plans but should have attractive wages and salaries).
C) having an outside wage and salary expert administer the system, so that there is no doubt as to its fairness and impartiality.
D) basing the incentives on group performance rather than individual performance.
E) making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties.

Answer 1

A) making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package.
Among the guidelines for creating incentive compensation systems that link employee behavior to organizational objectives is to make the performance payoff a major, not minor, piece of the total compensation package.