Management and labor share the labor cost reductions in which of these compensation schemes?
A) bonus system
B) quota system
C) Gilbreth plan
D) Scanlon plan
E) measured day work plan

Question

Quizplus · Accepted Answer

The Scanlon plan is a compensation scheme where management and labor share the cost reductions. Under this plan, a bonus is given to employees for achieving cost savings and productivity improvements. The bonus is based on a formula that considers total labor costs and the percentage of cost savings achieved. This plan promotes cooperation between management and labor in developing and applying cost-saving measures. The other compensation schemes listed do not involve cost-sharing between management and labor.

Management and Labor Share the Labor Cost Reductions in Which