Which of the following statements regarding performance incentives is true?
A)Employees tend to hold onto stock options rather than sell them.
B)Merit pay is always a successful program because employees recognize they will be rewarded only if performance increases.
C)Profit sharing is very effective in tying individual pay to employee effort.
D)Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs.

Question

Quizplus · Accepted Answer

Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs. This is because team-based incentives can encourage collaboration and teamwork among employees, resulting in increased productivity and higher levels of job satisfaction. Individual-based incentives, on the other hand, can sometimes create competition and conflict among employees, which can have a negative impact on team dynamics.

Which of the Following Statements Regarding Performance Incentives Is True