Gunther Rohn was rewarded for making a suggestion that saved Ewe and Eye Electronics thousands of dollars.Which type of incentive compensation approach might have worked best?
A)group incentive programs
B)gain sharing plan
C)management incentive plans
D)employee stock ownership plan

Question

Quizplus · Accepted Answer

A gain sharing plan would be the best option as it rewards employees for making suggestions that lead to cost savings for the organization. This approach aligns the interests of the employees with the overall goals of the company and encourages a culture of continuous improvement. Group incentive programs or management incentive plans may not be as effective in this case as they typically reward performance based on overall team or company performance, rather than individual contributions. An employee stock ownership plan may also be an effective incentive approach, but it is a more long-term strategy that involves giving employees ownership in the company.

Gunther Rohn Was Rewarded for Making a Suggestion That Saved