Because employees will not realize any financial gain until they actually sell their stock, the link between pay and performance is less obvious in employee ownership. Thus, from a(n)_____ standpoint, the effect on performance motivation may be limited.
A)agency theory
B)equity theory
C)efficiency wage theory
D)reinforcement theory
E)contract theory

Question

Quizplus · Accepted Answer

Under ownership program, employees will not realize any financial gain until they actually sell their stock (typically upon leaving the organization). The link between pay and performance may be less obvious under ownership than under profit sharing. Thus, from a reinforcement theory standpoint (with its emphasis on actually experiencing rewards), the effect on performance motivation may be limited.

Because Employees Will Not Realize Any Financial Gain Until They