A disadvantage of incentive plans such as profit-sharing, gain-sharing, and Scanlon plans is that:
A)such plans tend to minimize employee commitment to the organization.
B)most employees are not eligible to participate until they are ready to retire.
C)the link between individual effort and organizational reward is not always clear.
D)the plans only benefit executive management.

Question

Quizplus · Accepted Answer

Incentive plans like profit-sharing, gain-sharing, and Scanlon plans often distribute rewards based on overall organizational performance, making it difficult for employees to see a direct connection between their individual efforts and the rewards they receive.

A Disadvantage of Incentive Plans Such as Profit-Sharing, Gain-Sharing, and Scanlon