A new start-up firm wants to encourage team behaviours and a "culture of ownership" among all employees in the organization.Which of the following types of pay plans is NOT advisable?
A)differential piece rates
B)employee stock ownership plans
C)profit sharing
D)stock options

Question

Quizplus · Accepted Answer

Differential piece rates do not encourage teamwork or a culture of ownership, as they typically reward individuals based solely on their personal level of productivity. It can lead to a sense of competition rather than collaboration among employees, which is counterproductive to the goals of the company in this case. Instead, options such as ESOPs, profit sharing, and stock options promote collective ownership and incentivize employees to work together towards company goals.

A New Start-Up Firm Wants to Encourage Team Behaviours and a "Culture