The most important lesson learned from Scanlon and Improshare plans is that if management wants to gain the cooperation of its employees in improving efficiency, they must permit the employees to become involved psychologically as well as financially in the organization.

Question

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Both the Scanlon Plan and Improshare (Improved Productivity through Sharing) are incentive plans that involve employees in cost-saving measures and productivity improvements, emphasizing the importance of both psychological (sense of ownership and involvement in decision-making) and financial (sharing in the cost savings) engagement to motivate employees and improve organizational efficiency.

The Most Important Lesson Learned from Scanlon and Improshare Plans