Fundamentals of Human Resource Management 5th Edition by Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright

Exercise 9

Based on the balanced scorecard in Table 12.2, find the incentive pay for an employee earning a salary of $4,000 a month in each of the following situations.
a. The company met all of its target goals for the year. (Multiply the percentage at the top of the table by the employee's salary.)
b. The company met only its target goals for financial performance (25% of the total incentive pay) but none of the other goals.
c. The company met its stretch goals for financial performance and its base goals in the other areas. (For each category of goals, multiply the percentages by the employee's salary, and then add the amounts together.)