The link between individual employee actions and the incentives paid to them is most difficult to establish in which type of incentive plan?
A)Bonus
B)Commission
C)Merit pay
D)Piece rate
E)Profit sharing

Question

Quizplus · Accepted Answer

Profit sharing plans distribute a portion of the company's profits among employees as incentive pay. Since the amount of profit earned is more directly tied to the actions and performance of the entire company rather than the individual actions of each employee, it can be more difficult to trace the link between an individual employee's actions and the amount of incentive pay they receive.

The Link Between Individual Employee Actions and the Incentives Paid