Business

Question

For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which of the following statements describes a characteristic of a well-designed plan?A. Performance measures are to be linked to the individual's goalsB. Employees are given very broad performance goalsC. Employees value the rewards or incentives that are being offeredD. Employees are given limited resources to meet their goals

1 Answer

  • Answer:

    C. Employees value the rewards or incentives that are being offered

    Explanation:

    Let's see the different options for answer...

    A. Performance measures are to be linked to the individual's goals

    No.  Even if the performance measures should be linked to the individual's goals, just the mere existence of such KPI is not sufficient to motivate employees.   There has to be some performance reward attached to it.

    B. Employees are given very broad performance goals

    No. To get a good performance and motivate employees, they must be given clear goals and objectives.

    C. Employees value the rewards or incentives that are being offered

    Yes.  Even if you have good performance measurements, with realistic goals, the employees won't be motivated to reach those goals if the reward doesn't worth the effort.

    D. Employees are given limited resources to meet their goals

    No. They won't be motivated if they don't think they have the means to achieve those goals.

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