The Bonus plans, Profit-sharing plans, Stock-option plans, offered to employees is part of a company's ____________ .

Question

BlackTom AI · Accepted Answer

The question asks about where bonus plans, profit-sharing plans, and stock-option plans that are offered to employees fit within an organization's structure.
Option 1: 'Performance Appraisal' typically refers to evaluating an employee's past work performance, often tied to feedback and future goals, but it is not the designation for the programs that provide financial incentives like bonuses or stock options.
Option 2: 'Incentive Program' directly corresponds to a set of financial or non-financial rewards designed to motivate and reward employees for achieving targets or behaviors, which includes bonus plans, profit-sharing, and stock options.
Option 3: 'Compensation Program' is a broad umbrella covering all forms of compensation (salary, wages, benefits, and rewards). While incentive plans can be part of compensation, the specific collection of plans described is more precisely categorized as an incentive program rather than the entire compensation framework.
Option 4: 'Salary Program' typically refers to base pay structures and salary progression, not to variable reward plans like bonuses, profit-sharing, or stock options, which are incentive-based rather than guaranteed compensation.
Overall, the described plans are best understood as components of an Incentive Program, since their primary purpose is to drive performance and align employee rewards with organizational goals.

KSB-111-003.2025F EXAM 1 -- KSB-111 (Liederman -003)

The Bonus plans, Profit-sharing plans, Stock-option plans, offered to employees is part of a company's ____________ .

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