Final answer:
The payment system that offers quarterly or annual payments based on sales revenue is known as a cash plan, which is designed to foster teamwork and increase productivity.
Step-by-step explanation:
The pay scheme that offers payments to employees quarterly or annually, based on factors such as sales revenue, is commonly known as a cash plan. This type of incentive aligns employees' interests with the company's profitability and can motivate teams to work together to increase productivity and overall success. The other options like piecework, stock options, and wage dividend are different forms of incentives. Piecework pays employees for each unit produced, stock options give employees the right to buy shares at a fixed price in the future, and wage dividend is not a standard term used for employee incentives.
Group incentives like a cash plan can lead to increased productivity as workers directly benefit from the success of the business. If management decides to invest more in machinery in response to higher wages demanded by unions, union workers can become more productive by working with enhanced physical capital equipment. However, as the firm hires fewer workers due to increased efficiency from better machinery, the existing workforce can achieve higher productivity levels, potentially earning more through such incentive plans.