Team Spark LLC, a producer of consumer goods, used to practice gainsharing. After organizational restructuring, the management decides to replace its gainsharing plans with a piece-rate system. Which of the following is true of Team Spark LLC?
A) It used to provide team incentives, but now it provides individual incentives.
B) It used to provide individual incentives, but now it provides team incentives.
C) It used to provide team incentives, but now it provides organizational incentives.
D) It used to provide individual incentives, but now it provides organizational incentives.

Question

Quizplus · Accepted Answer

Gainsharing is a team-based incentive system, where rewards are based on the group's performance. On the other hand, the piece-rate system is an individual-based incentive system, where rewards are based on individual performance. Therefore, the company has shifted from team incentives to individual incentives.

Team Spark LLC, a Producer of Consumer Goods, Used to Practice