________ is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated.
A)Employee stock ownership plan
B)Gainsharing
C)Profit sharing
D)Piece-rate pay plan
E)Merit-based pay plan

Question

Quizplus · Accepted Answer

B)Gainsharing is a formula-based group incentive plan.It uses improvements in group productivity from one period to another to determine the total amount of money allocated.It is different from profit sharing in that it ties rewards to productivity gains rather than profits.Employees in a gainsharing plan can receive incentive awards even when the organization isn't profitable.

________ Is a Formula-Based Group Incentive Plan That Uses Improvements