The CEO of Workforce asked the human resource manager, May, to propose an approach to incentive pay. May proposes that the company create a gainsharing plan. What action(s) by the company will best increase the likelihood that gainsharing will succeed?
A) hiring employees who prefer to work alone and equipping them with cost data
B) sharing data about costs and setting up time for employees to interact
C) indicating that failure to achieve goals will lead to job cuts
D) using incentive pay as a substitute for goal setting and performance standards
E) promoting continuous improvement and limiting time spent on personal interactions

Question

Quizplus · Accepted Answer

Sharing data about costs and setting up time for employees to interact is crucial for gainsharing to succeed. This approach fosters a sense of accountability, encourages collaboration and teamwork, and provides essential feedback to the employees. They would be able to observe the impact of their work and identify opportunities for cost-saving and efficiency improvement. Other choices such as A, C, D, or E are unlikely to facilitate the constructive dialogue and joint problem-solving required for gainsharing to succeed.

The CEO of Workforce Asked the Human Resource Manager, May