What is the name of the incentive plan in which both employees and the organization share the financial gains according to a predetermined formula that reflects improved productivity and profitability?
A)gain sharing plan
B)group incentive plan
C)profit sharing plan
D)variable pay plan

Question

Quizplus · Accepted Answer

A gain sharing plan is a type of incentive plan where both employees and the organization share the financial gains based on predetermined formula which reflects improved productivity and profitability. This plan is designed to align employee efforts with the goals of the organization and motivate them to work towards achieving it. Group incentive plan, profit sharing plan, and variable pay plan may not necessarily reflect improved productivity and profitability and may have different formulas for calculating incentives.

What Is the Name of the Incentive Plan in Which