Asked by Samantha Beveridge on Jun 03, 2024
Verified
A(n) ____ plan gives a specified percentage of bottom line profits to employees.
A) gain-sharing
B) pay-for-performance
C) hourly wage
D) annual salary
E) profit-sharing
Profit-Sharing
A compensation program where employees or stakeholders receive a share of the company’s profits, often based on predefined criteria or performance metrics.
Gain-Sharing
A compensation strategy designed to share the financial benefits with employees when the company achieves specific performance improvements.
Pay-for-Performance
A compensation strategy where employees' pay is directly tied to their performance, productivity, or achievement of specific targets.
- Understand compensation strategies and their impact on motivation and organizational effectiveness.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
E
Explanation :
Profit-sharing plans distribute a percentage of the company's profits among employees, which can motivate them to increase productivity and improve overall company performance. It is not based on individual performance or hourly wage but only based on the company's profits.
Learning Objectives
- Understand compensation strategies and their impact on motivation and organizational effectiveness.