Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.

Question

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Linking incentives to the organization's profits or stock price exposes employees to the volatility of the market which can result in high risk. Changes in market conditions, economic events, or internal factors can result in a decrease in profits and a decrease in the value of the company's stock, leading to lower incentives or even none at all. This is a common concern among employees, as their financial stability is tied to the organization's financial performance.

Linking Incentives to the Organization's Profits or Stock Price Exposes