Question

t Esco Retail, all employees are constantly driven to work hard. The company places maximum emphasis on stocking high quality goods and providing high quality service to retain the edge they have in the retail industry. To promote organizational commitment further, employees are incentivized by enabling them to purchase company shares at below-market prices as a part of their benefits. This mode of providing incentives represents the use of ________. Group of answer choices modular plans core-plus plans merit-based plans employee stock ownership plans flexible benefits plans

Answer 1

Answer: Employee stock ownership plan

Explanation:

Employee stock ownership plan, is when the employees of a company own shares in the company or owning of shares in the parent company. Shares are typically gotten by the employees through a share option plan. The plans may either be selective or an all-employee plans. The selective plans are usually made available to the senior executives only while the all-employee plans gives participation to all the employees.

Most corporations use the stock ownership plans as a method of employee benefit. Employee stock ownership plan leads to organizational commitment and the achievement of organizational goals.