An organization uses a gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.This incentive plan is referred to as:
A) group bonus.
B) merit pay plan.
C) Scanlon plan.
D) piecework rate.
E) team award.

Question

Quizplus · Accepted Answer

Profit sharing has the practical advantage of costing less when the organization is experiencing financial difficulties. If the organization has little or no profit, this incentive pay is small or nonexistent, so employers may not need to rely as much on layoffs to reduce costs.

An Organization Uses a Gainsharing Program in Which Employees Receive