Asked by Vaishak Reddy on Jul 23, 2024
Verified
Management must be careful to ensure that incentive payments are viewed as both a reward and an entitlement.
Incentive Payments
Financial rewards given to employees to encourage or reward them for achieving particular goals or performing at a superior level.
Entitlement
A right granted by law or contract, especially to financial benefits from the government.
- Understand the significance of management commitment in the effectiveness of reward schemes.
Verified Answer
KR
Keerthikaa RamananJul 26, 2024
Final Answer :
False
Explanation :
Incentive payments should be viewed as a reward for good performance, and not an entitlement that employees expect regardless of their performance. This helps to motivate employees to work harder and achieve better results, rather than becoming complacent or taking their performance for granted.
Learning Objectives
- Understand the significance of management commitment in the effectiveness of reward schemes.
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