Research on Employee Stock Ownership Plans (ESOPs)shows:
A)ESOPs work better when combined with extensive employee involvement.
B)They have little effect on profitability.
C)Decrease in employee absenteeism under ESOPs.
D)ESOPs work better when the price of the stock is stable.
E)Restricted company flexibility in a competitive environment.

Question

Quizplus · Accepted Answer

Research has shown that ESOPs work better when combined with extensive employee involvement. This involvement can include participation in decision-making, training, and communication. This can lead to increased motivation and commitment among employees, which can ultimately improve company performance. ESOPs can also lead to a decrease in employee absenteeism. While there may be some restriction on company flexibility in a competitive environment, the benefits of employee involvement and motivation can often outweigh this limitation. ESOPs have also been found to be more effective when the price of the stock is stable. However, ESOPs do have a positive impact on profitability, contrary to option B.