21. A problem with merit pay as a motivator is that the amount of merit pay increase is oftentimes not large enough to have motivation value.
22. Merit pay is a short-term immediate incentive to reward employees for past performance.
23. A merit bonus is an increase is an employee’s base pay.
24. A discretionary team bonus provides a payment when a team completes a specific accomplishment.
25. A discretionary team bonus is provided at the discretion of the team’s manager whenever and at whatever level the manger decides.
26. Under a gainsharing program, in order to increase the likelihood of motivation, monetary rewards should be paid out as close to the time of performance as possible.
27. Employee involvement in a gainsharing program increases employee commitment and trust.
28. Stock options provide a long-term incentive that links an individual’s financial interests with the financial interests of others who own stock.
29. One advantage of employee stock ownership plans (ESOPs) is favorable tax treatment.
30. CEOs who own a significant amount of stock in their companies are unlikely to engage in risky behavior.