Asked by Thomas Waller on Jul 29, 2024
Verified
Paul, the HR manager at Carletta & Co., is trying to implement an effective group incentive plan that measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees. In this case, Paul should apply the incentive scheme of
A) piecework rate.
B) gainsharing.
C) sales commission.
D) merit pay.
E) ESOPs.
Gainsharing
A performance-based compensation strategy that rewards employees for contributing to the company's success through efficiencies and improvements.
Group Incentive Plan
A compensation system designed to reward a group of employees based on the collective achievements or performance of the group.
- Elucidate on different incentive payment plans like differential piece rates, standard hour blueprints, merit-based remuneration, and gainsharing frameworks.
- Establish the principal elements necessary for the flourishing of collective gain-sharing programs.
Verified Answer
JK
Jeannine KocisAug 01, 2024
Final Answer :
B
Explanation :
Gainsharing is a type of group incentive plan that measures increases in productivity and distributes a portion of its earnings to all employees. This aligns with Paul's aim of implementing an effective group incentive plan.
Learning Objectives
- Elucidate on different incentive payment plans like differential piece rates, standard hour blueprints, merit-based remuneration, and gainsharing frameworks.
- Establish the principal elements necessary for the flourishing of collective gain-sharing programs.