If employee participation in making pay-related decisions is encouraged in an organization,then
A) administering the plans become simple.
B) the organization's interests can be best protected.
C) the cost borne by the organization decreases.
D) monitoring performance becomes difficult.
E) the incentive plan has more chances of being successful.

Question

Quizplus · Accepted Answer

When employees are involved in making pay-related decisions, they are more likely to have a sense of ownership and buy-in to the incentive plan. This can increase motivation and lead to better performance, thus making the incentive plan more successful. However, administering the plans may become more complex and monitoring performance may require more effort. The cost borne by the organization may or may not decrease depending on the specific design of the incentive plan. Protecting the organization's interests may also be more difficult if employees have a significant say in pay-related decisions.

If Employee Participation in Making Pay-Related Decisions Is Encouraged in an Organization,then