Which of the following statements does NOT accurately characterize the Scanlon plan?
A)Employees share in pre-established cost savings based on employee effort.
B)Research results indicate that productivity and quality are increased and costs are reduced.
C)Formal employee participation is necessary.
D)The norm is that worker bonuses are all paid out each time.

Question

Quizplus · Accepted Answer

The statement that worker bonuses are all paid out each time is incorrect. In the Scanlon plan, bonuses are based on the pre-established cost savings and may not necessarily be paid out in full every time.

Which of the Following Statements Does NOT Accurately Characterize the Scanlon