An organization uses Scanlon plan to provide incentives to employees.The workers produce parts worth $5 million.The target ratio set by the organization is 30%.The employees will be given a bonus if the actual labor costs are less than:
A) $0.5 million.
B) $1 million.
C) $1.5 million.
D) $2 million.
E) $2.5 million.

Question

Quizplus · Accepted Answer

Employees may not see a strong link between their actions and the company's stock price, especially in larger organizations. The link between pay and performance is even harder to appreciate because the financial benefits mostly come when the stock is sold-typically when the employee leaves the organization.

An Organization Uses Scanlon Plan to Provide Incentives to Employees