What should employees typically do to earn bonuses under the Scanlon plan?
A) They should produce products at a rate much higher than the standard production time.
B) They should create goodwill with customers and close as many sales as possible.
C) They should follow a defined set of quality standards to produce the desired outcome.
D) They should keep labor costs to a minimum and produce as much as possible with that amount of labor.
E) They should improve their performance year after year so that they re-earn the bonus during each performance period.

Question

Quizplus · Accepted Answer

The Scanlon plan is a gainsharing program where employees receive bonuses for increasing productivity and efficiency, primarily by reducing labor costs while maintaining or improving output levels. This involves working smarter, not necessarily harder or faster, to produce more with the same or less amount of labor.

What Should Employees Typically Do to Earn Bonuses Under the Scanlon