A common problem associated with gainsharing is that such plans exacerbate normal labor and management tensions.

Question

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Gainsharing plans can lead to increased tensions between labor and management, as they focus on rewarding employees for increased efficiency and productivity, which can create conflicts over workload and responsibilities. Additionally, there may be disagreements over how the savings from gainsharing are distributed and who is responsible for achieving the goals.

A Common Problem Associated with Gainsharing Is That Such Plans