Which of the following statements regarding performance incentives is accurate?
A)Employees who are heavily rewarded by commissions may overwhelm customers who provide them with a low probability of making a sale.
B)When awarded stock options,employees tend to hold on to them rather than sell them.
C)Profit sharing is an effective way of tying employee pay to individual effort.
D)Gainsharing programs can be successful if the payout formula is generous and employees can participate in the management of the company.

Question

Quizplus · Accepted Answer

Gainsharing programs can be successful if the payout formula is generous and employees can participate in the management of the company. The statements in options A, B, and C are inaccurate. Option A suggests that heavily rewarding employees by commissions may lead them to overwhelm customers who have a low probability of making a sale, which is not true. Option B assumes that employees tend to hold on to stock options, which may not always be the case. Option C implies that profit sharing is an effective way of tying employee pay to individual effort, which is not always accurate.

Which of the Following Statements Regarding Performance Incentives Is Accurate