Since performance can be measured at the individual, work team, department, plant, strategic business unit, or organizational level, how does a company specify the level of aggregation for reward distribution?

The choice of what level of aggregation to use depends on the strategic objectives of the company and the way the work is structured within the organization. Employees working in jobs where performance is the result of individual efforts should be rewarded on an individual basis. For employees working in teams, especially self-managed teams, performance rewards should be based on team results. Executives who are responsible for the performance of an entire company should be rewarded on company-wide results. Many companies use a combination of levels of aggregation.