Asked by Camille Abaya on Sep 24, 2024

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​Potential problems with incentive based compensation are

A) ​not evaluating the relevant performance measures
B) rewarding outcomes that are not included in the performance evaluation
C) not granting rewards for meeting performance measures
D) ​all of the above

Incentive Based Compensation

A form of payment designed to reward employees for achieving specific performance targets or objectives.

Performance Measures

Metrics or indicators used to evaluate and track the efficiency, effectiveness, and productivity of an organization, employee, or process.

Rewarding Outcomes

Benefits or positive results achieved from specific actions or decisions, often used to motivate behavior or assess the success of projects.

  • Assess the components and impact of an effective incentive compensation strategy.
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KD
Karan Dhillon5 days ago
Final Answer :
D
Explanation :
All of the listed factors are potential problems with incentive based compensation. If performance measures are not relevant, the incentives may not actually motivate employees in a desired direction. Similarly, if outcomes are rewarded that are not part of the performance evaluation, employees may be incentivized to prioritize achieving those outcomes rather than meeting their actual job responsibilities. Finally, not granting rewards for meeting performance measures can undermine the credibility and effectiveness of the incentive program.