Question

Gerald, the CEO of Logiworks, decides to scrap the current individual incentive pay scheme for a group incentive structure in an effort to increase the overall benefit to the organization. Which of the following statements, if true, would weaken his decision?

A. Most of the employees had exercised their stock options before this change.

B. The employees were unaware of the impact of their actions on the company's finances.

C. The move was a response to problems that arose out of a poorly constructed bonus plan.

D. The organization was divided into departments whose managers were rewarded as one group.

E. The employees in the company are required to work in teams in order to accomplish their goals.

Answer

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