11. A major criticism of merit pay programs is that the differential in pay between high performers and mediocre, or even poor, performers is not significant enough to influence employee behavior or attitudes.
12. Individual incentive pay plans are more commonly found in organizations than are merit pay plans.
13. There is strong research evidence that profit-sharing plans contribute to organizational performance.
14. Deferred profit-sharing plans increases motivation among employees.
15. One solution to profit-sharing during a downturn is to design plans that have downside risk but not upside risk.
16. From a reinforcement theory standpoint, the performance motivation of stock option plans is particularly high.
17. Employee Stock Ownership Plans (ESOPs) can carry significant investment risks for employees.
18. One significant difference between gainsharing and profit-sharing plans is that gainsharing-plan payouts are generally distributed more frequently.
19. Gainsharing plans, like the Scanlon plan, and other pay-for-performance plans include monetary awards only.
20. Group incentive pay plans tend to use a broader range of performance measures than do individual-oriented plans.