Which Incentive Plan Would Enable Its Employees to Think Like

question 99

Multiple Choice

Which incentive plan would enable its employees to think like owners, taking a broad view of what they need to do in order to make the organization more effective?

• A) merit pay
• B) gainsharing
• C) the Scanlon plan
• D) performance bonuses
• E) profit sharing

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Definitions:

Innovation Diffusion

The process by which new ideas, practices, or technologies spread within a population or society, influencing patterns of adoption and utilization.

Patents

Patents are legal documents granted by the government that give inventors exclusive rights to their innovations for a specific period, preventing others from making, using, or selling the invention without permission.

Expected-Rate-of-Return Curve

A graphical representation showing the expected return of different portfolios or investments as a function of their risk.

Interest-Rate Cost-of-Funds Curve

A graphical representation illustrating the relationship between interest rates and the total cost of securing funds over different periods.