Asked by Cassandra Myers on Jul 07, 2024
Verified
QVT Financial, an auditing firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60 percent of the improvement is the company's share. The other 40 percent is distributed among the employees in the company. What is being exemplified in this scenario?
A) profit rate
B) gainsharing
C) commission sharing
D) merit gain
E) group bonus
Gainsharing
A compensation system where employees receive bonuses based on the improvement of operational efficiency and performance within an organization.
- Recognize the diversity of incentive pay arrangements, such as differential piece rate systems, standard hour schemes, merit compensation, and gainsharing programs.
- Pinpoint the critical components required for the triumph of team-based reward initiatives like gainsharing.
Verified Answer
DG
dejane grantJul 09, 2024
Final Answer :
B
Explanation :
This scenario exemplifies gainsharing, which is a type of incentive program where a portion of the financial gains resulting from increased productivity or efficiency is shared among employees.
Learning Objectives
- Recognize the diversity of incentive pay arrangements, such as differential piece rate systems, standard hour schemes, merit compensation, and gainsharing programs.
- Pinpoint the critical components required for the triumph of team-based reward initiatives like gainsharing.
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