A type of organization-wide incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives by sharing the resulting cost savings among employees and the company is referred to as a

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A gainsharing plan is specifically designed to incentivize employees to work together towards improving productivity and cost savings. The plan typically rewards employees with a percentage of the savings achieved as a result of the improvement efforts. This creates a win-win situation where the company benefits from increased productivity and the employees benefit from a share of the resulting cost savings. Profit-sharing plans, on the other hand, typically reward employees with a share of the company's profits, rather than directly rewarding productivity improvements.

A Type of Organization-Wide Incentive Plan That Engages Many or All