Multiple Choice QuestionA problem in developing effective compensation for teams is that:rewarding all team members equally is most fairrewarding individuals builds cohesivenessrewarding individual performance is a new way to pay peoplerewarding individuals erodes cohesiveness

When developing effective compensation for teams, one significant problem is that rewarding individuals can erode team cohesiveness. This is because individual rewards can create competition among team members rather than fostering collaboration and teamwork. Therefore, the correct choice is:
rewarding individuals erodes cohesiveness

Supplemental Knowledge

Compensation strategies for teams can be complex. Strategies must strike an equilibrium between fairness, motivation and cohesion in their reward systems so as to optimize team performance without creating discord between members of the group. Learning more about team compensation dynamics helps in devising rewarding systems which optimize performance while not creating discord among colleagues.

1. Rewarding All Team Members Equally:
   • This approach can seem fair but may not adequately recognize individual contributions, potentially leading to decreased motivation for high performers.
2. Rewarding Individuals:
   • Recognizing individual performance can motivate employees to excel but may also lead to competition rather than collaboration within the team.
3. Team Cohesiveness:
   • Cohesion is crucial for team success. Strategies that undermine this cohesiveness can negatively impact overall team performance and morale.

Real-Life Connections

Imagine being part of a sales team where both individual and collective efforts help achieve targets. Rewarding only individual achievements could foster an unhealthy competitive atmosphere where members become less inclined to assist one another - thus diminishing team spirit; but rewarding all players equally could leave top performers feeling undervalued and demotivated.
Balanced approaches often incorporate both individual and team rewards. Google, for instance, utilizes both personal bonuses and stock options alongside team incentives in order to maintain high motivation levels while encouraging collaboration.

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