The workers in a factory are encouraged to pursue cost-cutting strategies. Each month, the workers receive bonus checks that share some portion of the cost-cutting benefits with them. This approach to merit pay is called
A)commission pay.
B)the equity theory.
C)a piece-rate pay.
D)an employee stock option.
E)the Scanlon plan.

Question

Quizplus · Accepted Answer

The Scanlon plan is a gain-sharing program where employees receive bonuses based on the company's cost savings, encouraging them to work towards reducing costs.

The Workers in a Factory Are Encouraged to Pursue Cost-Cutting