The guidelines for designing an incentive compensation system that will help drive successful s execution include:

$$ making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package

having a bonus and incentive plan that applies to managers only $($employees should generally not be inc incentive pay plans but should have attractive wages and salaries$)$

having an outside wage and salary expert administer the system, so that there is no doubt as to its fair impartiality

$$ basing the incentives on group performance rather than individual performance

$$ making minimal use of non$-$monetary incentives and rewarding people for diligently performing their duties