List key factors that could lead to failure of a contingent pay plan
What will be an ideal response?
Key factors that could lead to failure of a contingent pay plan include:
• Poor performance management system in place
• Rewarding counterproductive behavior (folly of rewarding A while hoping for B)
• Rewards are not considered significant
• Managers are not accountable
• Extrinsic motivation at the expense of intrinsic motivation (employees may not be interested in their work, the environment may not be challenging, or they may lack control over what they do and how they do it)
• Disproportionately large rewards for executives
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Which of the following statements is FALSE?
A) The relationship between managerial ownership and firm value is unlikely to be the same for every firm, or even for different executives of the same firm. B) Even with the risk benefits of separating ownership and control, there are still examples of corporations in which the top managers have substantial ownership interests. C) Academic studies do not support the notion that greater managerial ownership is associated with fewer value-reducing actions by managers. D) While increasing managerial ownership may reduce perquisite consumption, it also makes managers harder to fire—thus reducing the incentive effect of the threat of dismissal.
The set of actions that employees perform to avoid the work situation that may eventually culminate in the employee quitting the organization are referred to as _____ behavior
A. productivity B. commitment C. performance D. withdrawal E. citizenship