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) hourly based pay systems
D) gain sharing

Question

Quizplus · Accepted Answer

Hourly based pay systems do not incentivize employees to focus their efforts on outcomes that are beneficial to both themselves and the organization as a whole. Instead, they are usually only concerned with completing the required hours of work, regardless of productivity or performance. In contrast, profit-sharing plans, employee stock ownership plans, and gain sharing all tie compensation directly to organizational outcomes and encourage employees to work towards the overall success of the company.

Which of the Following Compensation Systems Does Not Focus Employee