Outcome # 1

Question 1

Setting performance measure

Answer 1

What gets measured and rewarded
gets attention.

Performance options are available, most focus on
quality, cost control, or productivity

Question 2

Administering Incentive Plans

Answer 2

a number of points related to the effective administration of incentive plans.

1. if the plan is to succeed, poor performance must go unrewarded.
2. Annual salary budgets must be large enough to reward and reinforce exceptional performance
3. The overhead costs associated with plan implementation and administration must be determined