For each plan component listed, identify the relevant type ofincentive plan.
Choices: Group, Individual, Enterprise
Plan Component
Type of Incentive Plan
Badu manages four exempt employees. The company’spay-for-performance plan offers $150 bonuses to those who bringprojects in under budget. Three of Badu’s employees have earned thebonus and received praise at company meetings, but one employee hasnot. What is the most likely reason for this?
The employee is unaware of the plan.
The employee does not understand the importance of the plan.
The employee does not find the bonus motivating.
The employee believes the system is unequitable.
Organizations having a strategic goal of quality leadershipoften measure: _______ as part of theirpay-for-performance programs. CHOICES: customer satisfaction,cost reduction, profit maximization.
Carley supervises three people. Two of her employees are topperformers and both have earned bonuses this year. Carley’s thirdemployee tries very hard but underperforms. Carley tells you shefeels bad for this employee and is considering giving them a bonusfor their hard, but unimpressive, work. What is your bestresponse?
Offer the employee a bonus that is less than what his peersreceived, so they won’t be upset.
Incentive payments are good motivators, so offering a bonusmight improve his work.
This employee’s poor performance must go unrewarded.
Make sure there is enough in the company’s salary budget tocover the cost of the reward.
For each plan component listed, identify the relevant type of incentive plan. Choices: Group, Individual, Enterprise Pla
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