Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of each profit to employees?
A) Merit pay
B) Team award
C) Commission
D) Profit sharing
E) Gainsharing

Question

Quizplus · Accepted Answer

Rather than trying to figure out what performance measures will motivate employees to do the things that generate high profits and a rising stock price, many organizations offer incentive pay tied to those organizational performance measures. These organization-level incentives can motivate employees to align their activities with the organization's goals. Profit sharing is an example of organizational incentives.

Which of the Following Incentive Programs Measures Improvements in Productivity