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A. The team will only get a bonus if the project comes in% under budget, schedule and quality metric goals. Even though the team leads know this goal is unrealistic, they agree that it will motivate the team to work harder. B. The team member who works the hardest will receive $ C. Everyone will get a bonus of $ if the project meets its quality goals, $ if it meets its budget goals and $ if it comes in on time.
The reward system metioned in option C is BEST.
If only one person or few persons in team will be rewarded, although they worked harder, will demotivate others. Appreciation and rewards motivate people more then punishment. Rewarding one is punishment for others, because selecting one means rejecting others and rejection is worst punishment.
As for as a team is cocerned each and every member should be motivated and hardworking for the success of team.