Which of these performance-based rewards tends to create the strongest psychological connection between the individual employee's work effort and the reward received?
A)Profit sharing plan
B)Gainsharing plan
C)Employee stock ownership plan
D)Employee stock option plan
E)None of these rewards offer any psychological connection between the individual employee's work effort and the reward received.

Question

Quizplus · Accepted Answer

Gainsharing plans directly link the employee's work effort to the reward received, as the reward is based on the amount of cost savings or productivity improvements achieved by the team or department. This creates a strong psychological connection between the employee's work and the reward, as the employee can see the direct impact of their efforts on the overall success of the organization. Profit sharing plans and ESOPs can also create some connection to the individual's work effort, but not as direct as gainsharing plans. Employee stock option plans do not necessarily reward work effort, as the value of the stock may be influenced by factors outside of the employee's control.

Which of These Performance-Based Rewards Tends to Create the Strongest