Brendan,the HR manager at Baretta & Co. ,is trying to implement an effective group incentive plan which measures increases in productivity and effectiveness and distributes a portion of its earnings to all employees.In this case,Brendan should apply the incentive scheme of _____.
A) piecework rate
B) gainsharing
C) sales commission
D) merit pay
E) ESOPs

Question

Quizplus · Accepted Answer

The incentive scheme described in the scenario, which measures productivity and distributes earnings to all employees, aligns with the concept of gainsharing. Gainsharing plans typically involve setting goals for productivity or cost reduction, and distributing a portion of the savings achieved among employees as a bonus. Piecework rate, sales commission, merit pay, and ESOPs do not necessarily involve measuring increases in productivity or effectiveness and distributing earnings to all employees.

Brendan,the HR Manager at Baretta & Co