When gainsharing is first implemented:
A) efficient plants are likely to post higher gains than inefficient plants.
B) inefficient plants are likely to post higher gains than efficient plants.
C) employees are likely to suffer from effects of psychological contracts.
D) cooperation between employees decreases significantly.

Question

Quizplus · Accepted Answer

Inefficient plants are more likely to post higher gains than efficient plants when gainsharing is first implemented because there is more room for improvement in their operations and productivity. This allows for more significant gains to be shared among employees as efficiencies are realized.

When Gainsharing Is First Implemented