Asked by Laken Guzic on May 01, 2024
Verified
In larger organizations that have stock ownership plans, the employees may not see a strong link between their actions and the company's stock price.
Stock Ownership Plans
Employee benefit plans that give workers ownership interest in the company through the acquisition of stock, often aimed at improving employee motivation and performance.
Stock Price
The cost of purchasing a share of a specific company, which can fluctuate based on market conditions and the company's performance.
- Identify the factors that influence the effectiveness of incentive pay, such as the link between employee actions and company performance.
Verified Answer
LH
Layali HassounehMay 07, 2024
Final Answer :
True
Explanation :
In larger organizations, the actions of individual employees may not have a direct impact on the company's stock price due to its size and complexity. Additionally, employees may be more focused on their own individual job responsibilities rather than the overall performance of the company.
Learning Objectives
- Identify the factors that influence the effectiveness of incentive pay, such as the link between employee actions and company performance.
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