Chapter 11: Rewarding Performance

Chapter 11: Rewarding Performance
Challenges

After reading this chapter, you should be able to deal more effectively with the following challenges:

1. Recognize individual and group contributions to the firm by rewarding high performers.
2. Develop pay-for-performance plans that are appropriate for different levels in an organization.
3. Identify the potential benefits and drawbacks of a particular pay-for-performance system and choose the plan that is most appropriate for a particular firm.
4. Understand how the components of an executive compensation package motivate executives to make decisions that are in the firm's best interests.
5. Weigh the pros and cons of different compensation methods for sales personnel and design an incentive plan that is consistent with the firm's marketing strategy.
6. Design an incentive system to reward excellence in customer service.