Asked by Richard Sullivan on Jul 05, 2024
Verified
The Scanlon plan of gainsharing gives employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.
Scanlon Plan
An incentive plan designed to encourage cooperation, involvement, and sharing of benefits among employees through improved performance and productivity.
Gainsharing
Group incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.
- Understand how incentive compensation frameworks, such as profit sharing and the Scanlon plan, correlate with organizational objectives and the motivations of employees.
Verified Answer
TP
Trushil PatelJul 10, 2024
Final Answer :
True
Explanation :
The Scanlon plan of gainsharing does give employees a bonus if the ratio of labor costs to the sales value of production is below a set standard.
Learning Objectives
- Understand how incentive compensation frameworks, such as profit sharing and the Scanlon plan, correlate with organizational objectives and the motivations of employees.