Question

Goldwin Golf Corp. has developed a golf club that has a wider shaft and is 40 grams lighter than other clubs currently on the market. It has hired Lowell Agency Co. to develop an advertising campaign for this new club. Goldwin has offered to pay the agency 3 percent of its profits if it sells more than 30,000 clubs during its first full year of production. This bonus is an example of a(n) ______.

Answer 1

Incentive system

Step-by-step explanation:

The incentive system signifies a mechanism that motivates individuals to behave in the organization's interest.

Elements which are included in incentive system:

`\rightarrow` Monetary Compensation (e.g. various bonuses)

`\rightarrow`Non-monetary Rewards (e.g. gifts, car allowance, company insurance)

`\rightarrow` Targets (e.g. quick, hard, stretch)

`\rightarrow` Career prospects (e.g. advancement, contract termination)

`\rightarrow` Reputational factors (e.g. appreciation, rewards, reputation, wider social recognition, positive work impact)