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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