A multinational organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard. This incentive plan is referred to as
A) a group bonus.
B) merit pay.
C) the Scanlon plan.
D) a piecework rate.
E) a team award.

Question

Quizplus · Accepted Answer

The incentive plan described in the question is known as the Scanlon plan. This plan rewards employees with a bonus if they can reduce labor costs in proportion to the sales value of production. It is a type of gainsharing program, which focuses on aligning employee behavior with corporate goals and objectives. The Scanlon plan is an example of a team-based incentive program, as it requires collaboration and cooperation among employees to achieve the desired results.

A Multinational Organization Uses a Gainsharing Program in Which Employees