For employee stock ownership plans to be effective in improving performance, they must ________.
A) be based solely on productivity like gainsharing plans
B) be implemented such that employees psychologically experience ownership
C) be determined on the basis of performance appraisals and recent performance
D) be planned such that they are unaffected by company profitability
E) be based on the market compensation philosophy

Question

Quizplus · Accepted Answer

ESOPs have the potential to increase employee job satisfaction and work motivation, but employees need to psychologically experience ownership. That is, in addition to their financial stake in the company, they need to be kept regularly informed of the status of the business and have the opportunity to influence it in order to significantly improve the organization's performance.

For Employee Stock Ownership Plans to Be Effective in Improving