Which would be an example of a negative side effect of pay-for-performance plans?
A) Profit sharing plans will tend to decrease the "free-ride" that some workers get by being part of a team.
B) Employers get greater effort from workers by paying them a relatively high, above-equilibrium wage.
C) Workers have to take additional schooling to learn skills that will enable them to keep their jobs.
D) An increase in production from piece work can result in a decline in product quality.

Question

Quizplus · Accepted Answer

One negative side effect of pay-for-performance plans is that an increase in production from piece work can result in a decline in product quality. This is because workers may prioritize quantity over quality in order to maximize their pay under the plan.

Which Would Be an Example of a Negative Side Effect