How does the bonus given to employees under Improshare differ from that given under the Scanlon Plan?
A) It is based on individual merit.
B) It is based on productivity gains resulting from a reduction in production time.
C) It is based on dollar savings.
D) The organization does not share in the gains.

Question

Quizplus · Accepted Answer

The bonus given under Improshare is based on productivity gains resulting from a reduction in production time, whereas under the Scanlon Plan, the bonus is based on dollar savings. Additionally, under Improshare, the organization shares in the gains, whereas this is not specified under the Scanlon Plan. Improshare also does not necessarily reward individual merit, as it is based on team productivity gains.

How Does the Bonus Given to Employees Under Improshare Differ