Which of the following statements is true regarding gainsharing?
A)Gainsharing focuses on productivity gains rather than profits.
B)Gainsharing involves paying employees based on the number of new skills acquired by them in a specific time period.
C)Gainsharing does not distribute profits, only gains in profits.
D)Employees working under gainsharing plans have a greater feeling of psychological ownership.
E)Gain sharing encourages social loafing.

Question

Quizplus · Accepted Answer

A)Gainsharing 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.Because the benefits accrue to groups of workers, high-performing workers pressure weaker performers to work harder, improving performance for the group as a whole.

Which of the Following Statements Is True Regarding Gainsharing