Performance-Based Rewards Have Been Criticized on the Grounds That

question 39

Multiple Choice

Performance-based rewards have been criticized on the grounds that:

• A)they undermine the employee's motivation from the work itself.
• B)they potentially distance employees and management from each other.
• C)they tend to discourage creativity.
• D)they are used as quick fixes for problems.
• E)All of the answers are correct.

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Definitions:

Operating Income

Operating Income, also known as operating profit, reflects the amount of profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Financial Risk

The possibility of losing money on an investment or business venture.

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them rights to dividends and a stake in the company's ownership.

Preferred Shares

Preferred shares represent a class of ownership in a corporation with a fixed dividend and priority over common shares in asset liquidation.