Question

Additional Case 11.1
The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm's team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced.
Refer to Additional Case 11.1. In addition to rewarding high performers, Sussex executives want to gain the maximum tax advantage, increase employee commitment, and maximize financial flexibility. Which pay-for-performance plan would be most appropriate for Sussex?
A) Individual-based
B) Corporate-wide
C) Plantwide
D) Team-based

Answer

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