Sound Guidelines for Designing a Reward and Incentive System
Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?
A. Rewarding and recognizing employees who consistently meet or exceed performance expectations
B. Providing rewards to non-performers who do not fare well under the incentive system
C. Focusing on high performers who contribute to the successful execution of the organization's strategy
D. Creating a culture of high performance and excellence
Answer:
The statement "Ways must be found to reward deserving non-performers who, for some reason, do not fare well under the incentive system" is not a sound guideline for designing a reward and incentive system that promotes good strategy execution.
Reward and incentive systems are typically designed to motivate and reward high performers who contribute to the successful execution of the organization's strategy. Providing rewards to non-performers who do not fare well under the incentive system would undermine the purpose of the system and could lead to a lack of accountability and decreased motivation among employees.
A sound guideline for designing a reward and incentive system would be to focus on rewarding and recognizing employees who consistently meet or exceed performance expectations, demonstrate behaviors aligned with the organization's goals, and contribute to the overall success of the strategy execution. This helps create a culture of high performance and encourages employees to strive for excellence.