What Are the Two Major Limitations of Objective Incentive Payment

What are the two major limitations of objective incentive payment (OIP) schemes?

A) OIP schemes encourage an emphasis on quantity at the expense of quality and the firm must use costly monitoring technology.
B) Most professions have output that is easy to quantify and the firm must use costly monitoring technology.
C) OIPs encourage shirking and the firm must use costly monitoring technology.
D) OIP schemes do not encourage productivity as much as wages do and the firm cannot measure subjective quality.
E) OIPs encourage an emphasis on quantity at the expense of quality and the firm cannot measure subjective quality.

Correct Answer:

Verified

Show Answer