A mid-sized city introduced a reward system whereby employees would find ways to reduce costs and increase work efficiency.Every employee would receive a portion of the surplus budget resulting from these cost savings.Which of the following reward systems is this city using?
A)Gainsharing plan
B)Commission system
C)Piece rate plan
D)Share option plan
E)Commission plan

Question

Quizplus · Accepted Answer

Gain sharing calculates bonuses from the work unit's cost savings and productivity improvement.Gainsharing plans also create a reasonably strong link between effort and performance, because much of the cost reduction and labor efficiency is within the team's control.The city is encouraging employees to find ways to reduce costs and increase work efficiency.

A Mid-Sized City Introduced a Reward System Whereby Employees Would