Which of the following is a difference between gainsharing and profit-sharing incentive systems?
A) Gainsharing is a group incentive system, whereas profit sharing is an individual incentive system.
B) Gainsharing involves distributing savings among all the employees in a company, whereas profit sharing involves distributing savings among the members of a specific team.
C) Gainsharing involves sharing cost savings from productivity improvements with employees, whereas profit sharing involves distributing a portion of a company's gains to all employees.
D) Gainsharing is independent of a team's performance, whereas profit sharing is specific to the contributions of a work group.

Question

Quizplus · Accepted Answer

Gainsharing is specifically focused on sharing the cost savings achieved through productivity improvements with employees, typically at the department or team level. In contrast, profit-sharing involves distributing a portion of the company's profits to all employees, making it a broader incentive system that rewards employees based on the overall financial performance of the company.

Which of the Following Is a Difference Between Gainsharing and Profit-Sharing