Which of the following compensation systems does NOT focus employee efforts on outcomes that are beneficial to both themselves and the organization as a whole?
A)Profit-sharing plans
B)Employee stock ownership plans
C)Hour-based pay plans
D)Gain sharing plans

Question

Quizplus · Accepted Answer

Hour-based pay plans do not tie employee compensation to organizational outcomes, but rather to the number of hours worked. This can create incentives for employees to focus on quantity over quality of work or to waste time in order to increase their pay. The other options, profit-sharing plans, employee stock ownership plans, and gain sharing plans, all tie compensation to outcomes that benefit both the employee and the organization.

Which of the Following Compensation Systems Does NOT Focus Employee