Which of the following incentive programs measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees?
A) merit pay
B) team award
C) commission
D) standard hour plans
E) gainsharing

Question

Quizplus · Accepted Answer

Gainsharing is a program that measures improvements in productivity and effectiveness and distributes a portion of the earnings to all employees. This program aligns the interests of the company and the employees, as both are incentivized to work towards improving productivity and profits. The other options listed - merit pay, team award, commission, and standard hour plans - do not necessarily distribute earnings to all employees, and they may not be tied directly to improvements in productivity and effectiveness.

Which of the Following Incentive Programs Measures Improvements in Productivity