Heter and Co., a multinational firm, invited groups of employees to suggest strategies for reducing cost. The firm implemented one of the strategies suggested by a group and made huge gains. If the firm uses the Scanlon plan to distribute the gains, the firm is most likely to:
A) distribute the majority of the total gain to its executives.
B) distribute about one-third of the total cost savings among its employees.
C) distribute the cost savings to the entire organization.
D) distribute the total gain equally and exclusively among all the members of the group that came up with the strategy.

Question

Quizplus · Accepted Answer

The Scanlon plan is a gainsharing program where cost savings are distributed to the entire organization, not just to the executives or the group that suggested the strategy. This encourages teamwork and collective effort towards improving efficiency and reducing costs.