Human Resources Chapter 20 Homework Students typically find this to be an interesting and challenging exercise. The author recommends using

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EXERCISE 20

DESIGNING AN INCENTIVE COMPENSATION PLAN

Students typically find this to be an interesting and challenging exercise. The author recommends using it

as a team project for classroom discussion.

EXHIBIT 20-1

PROPOSED SHORT-TERM INCENTIVE COMPENSATION PLAN

Performance Measures

POSITION

Corp

PROFITS

Corp

SALES

Objs

Corp VP of Finance (example) 50 20 20 10

Corp VP of Engineering 40 20 20 20

Corp VP of HR 40 20 20 20

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Div VP of Finance 10 40 30 10 10

Div VP of Engineering 10 25 20 25 20

Div VP of HR 10 25 20 25 20