Which of the Following Statements Regarding Performance Incentives Is Accurate

question 129

Multiple Choice

Which of the following statements regarding performance incentives is accurate?

• A)Employees who are heavily rewarded by commissions may overwhelm customers who provide them with a low probability of making a sale.
• B)When awarded stock options,employees tend to hold on to them rather than sell them.
• C)Profit sharing is an effective way of tying employee pay to individual effort.
• D)Gainsharing programs can be successful if the payout formula is generous and employees can participate in the management of the company.

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Definitions:

Laissez-Faire Management

A hands-off management style where employees are given autonomy in their tasks and decision-making, with minimal direct supervision from managers.

Transformational Management

A leadership approach that seeks to inspire and motivate employees to achieve extraordinary outcomes by focusing on shared values, employee needs, and personal development.

Organization's Vision

An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future, serving as a guide for choosing current and future courses of action.

Long-Term State

A sustained condition or situation over an extended period, often used in the context of planning, investment, or health and wellbeing.