Which of the following is a difference between a profit-sharing plan and an employee ownership plan?
A)Unlike an ownership plan, base pay is not reduced when a profit-sharing plan in introduced.
B)Ownership focuses on the success of the organization as a whole unlike profit-sharing.
C)Profit sharing plans promote individual competition whereas ownership plans promote group competition.
D)The link between pay and performance is less obvious under ownership than under profit sharing.
E)Ownership plans promote individual competition whereas profit-sharing plans promote group competition.

Question

Quizplus · Accepted Answer

Under ownership program, employees will not realize any financial gain until they actually sell their stock (typically upon leaving the organization). The link between pay and performance may be less obvious under ownership than under profit sharing. Thus, from a reinforcement theory standpoint (with its emphasis on actually experiencing rewards), the effect on performance motivation may be limited.

Which of the Following Is a Difference Between a Profit-Sharing