False. Setting incentive compensation involves finding the right balance between risk and reward.
Incentive compensation is a variable compensation scheme in which an employees’ earning is directly linked to the work done- which may be the amount of sales, the successful execution of a project, etc.
Thus, in a sense, incentive compensation balances risk and reward, in that there is a risk of getting lower pay if an employee fails to achieve a target, and at the same time exceeding the targets will bring rewards over the normal level of pay.
The rationale behind this is that incentives help support better performance, and the employee’s goals and more aligned with the goals of the organization.
To learn more about incentive compensation: brainly.com/question/22778579
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