Asked by joban preet Thind on Jul 26, 2024
Verified
Which of the following pay plans can be plagued by the "free rider" effect?
A) piece rates
B) team incentives
C) base pay
D) retirement plans
Free Rider Effect
A phenomenon where some individuals benefit from resources or services without contributing to the cost, often seen in team or group settings.
Team Incentives
Reward systems designed to motivate team performance by offering benefits or compensation based on achieving collective goals or benchmarks.
Piece Rates
A payment method where workers are paid a fixed rate for each unit of production completed, encouraging productivity and efficiency.
- Understand the implications of different compensation structures on employee retention and performance.
Verified Answer
JA
Juliana AbdulJul 27, 2024
Final Answer :
B
Explanation :
The "free rider" effect is a problem that can occur with team incentives, where some team members may benefit from the efforts of others without contributing significantly themselves. This is because the reward is based on the team's overall performance rather than individual contributions.
Learning Objectives
- Understand the implications of different compensation structures on employee retention and performance.