The variable pay plan with the highest instrumentality is _____.

Question

Quizplus · Accepted Answer

Gain sharing has the highest instrumentality, as it directly ties employee efforts to cost savings or productivity gains for the organization. The pay plan is designed to share the gains with employees, so they are motivated to contribute to the achievement of organizational goals. Team incentives and a balanced scorecard may have some instrumentality, but it may not be as high as gain sharing. Stock ownership may offer a long-term incentive, but it may not have a direct impact on employee performance or motivation.

The Variable Pay Plan with the Highest Instrumentality Is _____