GPHR Exam Dumps | An organization is creating an incentive pay plan for its global executives. Due to time pressures, the

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Question 112/204

An organization is creating an incentive pay plan for its global executives. Due to time pressures, the HR
Director is not able to perform a complete analysis as to the measures that should be evaluated for each
executive. Therefore, since the focus of the organization this year is on meeting revenue targets in order to
reach break-even in 2 years, the HR Director and CEO recommend to the Board of Directors an incentive
plan for each executive tied to this year's revenue only. Which of the following statements is true in regards
to the incentive pay plan?

A. This is not an effective executive incentive pay plan because it does not aligned with the organizational
goals and objectives

B. This is not an effective executive incentive pay plan because it does not have a sunset clause

C. This is not an effective executive incentive pay plan because it does not incorporate goals line of sight

D. This executive incentive pay plan is not a win-win situation

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Question 112/204

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