A firm with a strategic goal of streamlining operations should use ________ to reward the long-term focus on efficiency and cost control.
A) Restricted stock plans
B) Stock options
C) Cash
D) Golden parachutes

Question

Quizplus · Accepted Answer

Restricted stock plans offer employees shares of company stock that are subject to certain restrictions, such as a vesting period or performance goals. This incentivizes employees to focus on long-term goals and helps align their interests with the company's overall strategic goals. Additionally, by tying rewards to company stock, employees have a vested interest in the company's financial success and are motivated to work towards improving operations and reducing costs. Stock options may also be effective, but they can be more short-term focused and less effective at incentivizing long-term efficiency goals. Cash and golden parachutes do not provide the same motivation for employees to work towards operational efficiencies.

A Firm with a Strategic Goal of Streamlining Operations Should