If You Were Developing an Incentive System Designed to Help

Multiple Choice

If you were developing an incentive system designed to help drive successful strategy execution, which compensation and reward system would you NOT consider in your strategy execution effort?

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