Which of the following statements about forms of variable pay is MOST accurate?

Question

Quizplus · Accepted Answer

Gain sharing is a form of variable pay that rewards employees for improving productivity, reducing costs, or increasing profits based on a predetermined formula. The rewards are usually given to a group of employees and are meant to motivate them to work together and increase their collective output.

The other statements are not accurate. Profit-sharing plans are not the same as piece-rate plans, which pay employees based on the number of units produced. Stock options are a type of equity-based compensation, not a job-sharing plan. Finally, profit-sharing plans are a form of variable pay that reward employees with a portion of the company's profits, which is an extrinsic reward. The idea that intrinsic rewards are more motivating than extrinsic ones is a matter of debate among motivational theorists.

Which of the Following Statements About Forms of Variable Pay