Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?
A) tying incentives to performance outcomes directly linked to good strategy execution and financial performance
B) keeping the time between achieving the target performance outcome and the payment of the reward as short as possible
C) making sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
D) generous rewards for people who turn in outstanding performances
E) a reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels
E) a reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels
Among the guidelines for creating incentive compensation systems that link employee behavior to organizational objectives are (1) make the performance payoff a major, not minor, piece of the total compensation package; (2) offer incentives that extend to all managers and all workers, not just top management; (3) administer the reward system with scrupulous objectivity and fairness; (4) tie incentives to performance outcomes directly linked to good strategy execution and financial performance; (5) make sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect; and (6) keep the time between achieving the target performance outcome and the payment of the reward as short as possible. A reward system that involves 50 percent nonmonetary rewards, etc., is not one of the guidelines.
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A) at the beginning of the accounting period B) at the end of the accounting period C) when revenue is realized (or realizable) D) anytime we need to adjust an account
One of the major challenges of situational leadership is ______.
a. using it on a daily basis b. including followers in its application c. getting an accurate reading of followers and their needs and expectations d. changing inflexible followers
Which of the following statements is NOT CORRECT?
A. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. B. Accruals are "free" in the sense that no explicit interest is paid on these funds. C. A conservative approach to working capital management will result in most if not all permanent assets being financed with long-term capital. D. The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt. This added risk stems from the greater variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt. E. Bank loans generally carry a higher interest rate than commercial paper.
Leverage ratios measure organizational performance based on how well managers borrow money or use equity to finance operations.
Answer the following statement true (T) or false (F)