Asked by TEHREEM AHMED on Jul 22, 2024
Verified
An organization wants to provide its employees information about what its goals are and what it expects employees to accomplish. It is planning to implement an incentive plan that helps employees understand the organization's goals. Which plan should be used by this organization?
A) a retention bonus
B) a piecework rate system
C) a merit pay system
D) the Scanlon plan
E) a balanced scorecard
Incentive Plan
A reward system used by companies to motivate and financially compensate employees based on achieving specific performance targets.
Organization's Goals
The objectives or targets a company aims to achieve, guiding its operations and strategic planning.
Retention Bonus
A financial reward offered to an employee as an incentive to remain with the company, underlining the organization's appreciation for their contribution.
- Identify the distinct functions and effects of various reward strategies, including the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).
Verified Answer
TJ
Tatyana JuarezJul 23, 2024
Final Answer :
E
Explanation :
The balanced scorecard is a tool used by organizations to communicate their goals and objectives to employees. It helps employees understand what the organization values and what is expected of them, and it aligns individual performance with the organization's strategic goals. Implementing a balanced scorecard incentive plan would be appropriate for this organization's needs. Retention bonuses, piecework rate systems, merit pay systems, and the Scanlon plan are all types of incentive plans, but they do not provide the level of goal alignment and communication that a balanced scorecard can offer.
Learning Objectives
- Identify the distinct functions and effects of various reward strategies, including the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).