The CEO of Logiworks asked the human resource manager,April,to propose an approach to incentive pay.April 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 the best approach to increase the likelihood that gainsharing will succeed. Gainsharing plans involve employees sharing in financial gains when the company achieves specific performance goals. To do so, employees need to understand how their work affects company performance and have access to data about costs and productivity. Setting up time for employees to interact will promote collaboration, information sharing, and problem-solving that will help employees identify opportunities for improvement and take ownership of their work.

The CEO of Logiworks Asked the Human Resource Manager,April,to Propose