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What should organizations avoid to ensure they Do not focus on individual incentives that conflict with company goals?
Providing team-based rewards
Giving sales incentives
Implementing performance reviews
Setting annual targets
The correct answer is: Giving sales incentives
Organizations should avoid giving sales incentives that are based solely on individual performance because these incentives can lead to behaviors that prioritize personal gain over the collective success of the company. When sales incentives are structured in a way that rewards individual accomplishments without considering overall company goals, it can create a misalignment between what employees aim to achieve and the strategic objectives of the organization. For example, if a salesperson is incentivized solely by the number of sales they close, they may prioritize closing deals at any cost, potentially neglecting long-term customer relationships or leading to unethical behavior. This undermines the company's vision and can result in a negative impact on team dynamics, cooperation, and shared accountability, ultimately harming overall organizational success. On the other hand, providing team-based rewards encourages collaboration and aligns employees' efforts with the company's broader goals. Implementing performance reviews and setting annual targets can help track progress and ensure that everyone is working towards common objectives, but these practices rely on a framework that encourages alignment rather than individual competition that can arise from individual sales incentives.