Mignon Is Worrying About the Request to Institute an Incentive

question 5

Multiple Choice

Mignon is worrying about the request to institute an incentive pay plan in her organization. All of these concerns are well-founded EXCEPT

• A) individual incentives may encourage workers to sacrifice quality for quantity.
• B) individual incentives may make coworkers enemies.
• C) group incentives may reduce cooperation on shared tasks.
• D) it's often hard for individuals to see their contribution to an organization-wide incentive, the dilution effect.
• E) individual incentives may reduce workplace communication and interaction.

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Definitions:

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government.

Consolidated Income

The total net income of a parent company and its subsidiaries, after accounting for the ownership interest of noncontrolling shareholders.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Accrual-Based Net Income

The measure of a company's financial performance that includes both cash and non-cash items, recognizing revenues when they are earned and expenses when they are incurred.