The Guidelines for Designing an Incentive Compensation System That Will

Multiple Choice

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

A) making the performance payoff a major, not minor, piece of the total compensation package.
B) having incentives that apply to the management team (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 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.