A Disadvantage of Incentive Plans Such as Profit-Sharing, Gain-Sharing, and Scanlon

question 154

Multiple Choice

A disadvantage of incentive plans such as profit-sharing, gain-sharing, and Scanlon plans is that:

• A)such plans tend to minimize employee commitment to the organization.
• B)most employees are not eligible to participate until they are ready to retire.
• C)the link between individual effort and organizational reward is not always clear.
• D)the plans only benefit executive management.

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Definitions:

Thwarted

Prevented from accomplishing a goal or fulfilling a desire; obstructed.

Pursuit

The act of following or chasing something with the goal of catching or achieving it.

Approach-Avoidance Conflict

A psychological struggle where a single goal or option has both appealing and repelling aspects, causing conflict.

Attack-Avoidance Conflict

A psychological conflict that occurs when an individual is motivated to approach or attack a goal but also wishes to avoid it due to perceived negative consequences.