Gainsharing is
A) a program allowing employees to participate financially in the productivity gains they achieved.
B) the same as stock options.
C) a type of empowerment.
D) a management style.

Question

Quizplus · Accepted Answer

Gainsharing is a program that enables employees to share in the financial benefits produced by their productivity gains. In other words, Gainsharing is an incentive payment plan that links employees' rewards to the company's productivity gains. Thus, option A is correct. Option B is incorrect because stock options are a type of financial instrument that gives employees the right to buy or sell a company's stock at a particular price during a particular time. Option C and D are also incorrect because Gainsharing is not a type of empowerment or a management style, but rather a financial rewards program aimed at encouraging and rewarding employees for their contributions to productivity improvements.

Gainsharing Is