West End Hospital was concerned about rising costs for patients who have surgery for joint replacement. It tried rewarding staff in any quarter they met targets for lower use of supplies, but costs continued to rise. An investigation showed that one source of costs was the readmission of patients who experienced infections after surgery. The human resource department proposed setting up a gainsharing program with an effectiveness measure related to reducing infections. Which statement about gainsharing best supports this recommendation?
A) With gainsharing, employees are freed to collaborate on how to improve performance.
B) Gainsharing creates a competitive environment, so employees will try to outdo one another.
C) Gainsharing is appropriate because the jobs in this case are simple, and so are the performance standards.
D) Gainsharing will narrow employees' focus to the key aspects of their individual jobs and rewards.
E) The success of gainsharing requires management acceptance of employee input.
Correct Answer:
Verified
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