Asked by
Syeda Jamal
on Oct 22, 2024Verified
Allowing groups of employees to share in any savings or "gains" realized when their efforts result in measurable cost reductions or productivity increases is called
A) loss sharing.
B) gain-sharing.
C) bonus pay.
D) employee stock ownership plan.
E) gains pay.
Gain-sharing
A performance-based compensation strategy where employees receive bonuses based on the improvement of company metrics.
Productivity Increases
The improvement in the efficiency of production processes, leading to more output from the same amount of inputs.
Measurable Cost Reductions
Specific decreases in expenses that can be quantified and attributed to specific actions or initiatives.
- Grasp the significance of performance-based pay schemes and incentive pay in enhancing employee effort.
Verified Answer
VS
Learning Objectives
- Grasp the significance of performance-based pay schemes and incentive pay in enhancing employee effort.