In a _________,firms make monetary payments to a specific group or groups of employees for producing more output or generating cost savings beyond some established goal.

Question

Quizplus · Accepted Answer

A gain-sharing plan is specifically designed to reward employees for improving the organization's performance through cost savings, increased productivity, or other metrics. It is different from a profit-sharing plan which distributes a portion of the company's profits to all employees. Fee-for-service plans are used in the healthcare industry to pay doctors and providers for specific services rendered. Graded vesting schedules are used in retirement plans to determine when employees become fully vested in their benefits. Therefore, the best choice in this scenario is "A) gain-sharing plan."

In a _________,Firms Make Monetary Payments to a Specific Group