Asked by Aa'Kyra Rivers on Jul 29, 2024
Verified
Which incentive plans are specifically designed to promote group performance?
A) performance bonuses
B) gainsharing
C) standard hour plans
D) merit pay
E) commissions
Gainsharing
A performance-based compensation program where the savings or gains from increased productivity are shared with employees.
- Distinguish among various incentive compensation schemes, including differential piece rates, standard hour plans, merit-based pay, and gainsharing arrangements.
- Understand the influence of reward systems on worker motivation and company achievement.
- Determine the essential elements for the effectiveness of collective bonus schemes such as gainsharing.
Verified Answer
ZK
Zybrea KnightAug 01, 2024
Final Answer :
B
Explanation :
Gainsharing plans are specifically designed to promote group performance by providing incentives to groups of employees for achieving cost savings, productivity increases, or quality improvements. The incentive payout is typically a percentage of the achieved cost savings or productivity improvements, which encourages collaboration and teamwork among employees to work together towards achieving common goals.
Learning Objectives
- Distinguish among various incentive compensation schemes, including differential piece rates, standard hour plans, merit-based pay, and gainsharing arrangements.
- Understand the influence of reward systems on worker motivation and company achievement.
- Determine the essential elements for the effectiveness of collective bonus schemes such as gainsharing.