Question

assignment: chapter 10: pay - for - performance: incentive rewards
new product to market on time and on budget. what is the best way for adina to reward this employees recent behavior?
raise the employee base salary.
offer the employee lump sum merit pay.
offer the employee sales incentives.
invite the employee into an improshare plan.
to establish meaningful performance measures, the measures—at all organizational levels—must be consistent with the: the organization.
carley supervises three people. two of her employees are top performers and both have earned bonuses this year. carleys third employee tries hard but underperforms. carley tells you she feels bad for this employee and is considering giving them a bonus for their hard, but unimpressive, work. what is your best response?
incentive payments are good motivators, so offering a bonus might improve his work.
this employees poor performance must go unrewarded.
offer the employee a bonus that is less than what his peers received, so they wont be upset.
make sure there is enough in the companys salary budget to cover the cost of the reward.

Explanation:

1. For the first question, offering lump - sum merit pay is a good way to reward a one - time successful behavior like launching a new product on time and on budget. A base salary raise is more for long - term performance, sales incentives are for sales - related tasks, and an improshare plan is for group or organizational performance improvement.
2. For the third question, performance - based rewards should be given based on actual performance. Rewarding underperformance can set a bad precedent and undermine the purpose of performance - based pay. Incentive payments are for performance, not just effort, and giving a smaller bonus still rewards underperformance. Budget considerations are secondary to the principle of performance - based rewards.

Answer:

1. B. Offer the employee lump sum merit pay.
2. B. This employee's poor performance must go unrewarded.