Asked by Viktoriia Gervasi on Jul 15, 2024

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For five years, Mainstream Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year. In the first year of that incentive program, 23 employees earned the bonus, but last year, only 7 submitted ideas, and only two of the ideas would actually save more than a few dollars. The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan. Which statement best supports this argument?

A) Gainsharing succeeds regardless of whether employees understand how performance is measured.
B) Gainsharing is likely to succeed under almost any organizational conditions.
C) Gainsharing broadens employees' horizons beyond the range of activities they can influence.
D) Gainsharing measures oversimplify the complex responsibilities of production work.
E) Gainsharing expands employees' thinking beyond their individual interests.

Gainsharing

A compensation strategy where employees receive bonuses based on the savings or gains achieved by their performance improvements, fostering collaboration and efficiency.

  • Assess the efficacy of different motivational programs for various job functions and employee responsibilities.
  • Acknowledge the significance of motivation plans in driving employee engagement and achieving business success.
  • Recognize the indispensable aspects crucial for the achievement of collaborative incentive arrangements like gainsharing.
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SG
Summer GaydenJul 18, 2024
Final Answer :
E
Explanation :
Gainsharing encourages a collective approach to problem-solving and cost-saving, which can lead to more comprehensive and innovative solutions than individual incentives, which focus on personal gain.