Which of the Following Is a Disadvantage of Incentive Compensation

question 73

Multiple Choice

Which of the following is a disadvantage of incentive compensation plans?

• A) Employees know that rise in productivity will have no impact on their compensation.
• B) Employees are taxed heavily on their income from incentive plans.
• C) Employers are taxed heavily on their expenditure incurred through incentive plans.
• D) Employees don't develop loyalty to their employers when incentive plans are practiced.
• E) Employers are unable to increase employee productivity while following incentive plans.

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Definitions:

Negotiators

Parties engaged in discussion to settle differences or reach an agreement, utilizing various strategies and tactics in the negotiation process.

Dispute

A disagreement or argument between parties that can arise from differing views, interests, or claims.

Devaluing

The act of reducing or undermining the perceived worth, importance, or validity of something or someone.

Concessions

Compromises made by one party in a negotiation to reach an agreement or settlement.