RedCat LLC, a footwear manufacturing company, practiced gainsharing. After organizational restructuring, the management has decided to replace gainsharing with profit sharing. Which of the following is true of RedCat LLC?
A) It provided individual incentives; now it provides group incentives.
B) It provided organizational incentives; now it provides individual incentives.
C) It provided individual incentives; now it provides organizational incentives.
D) It provided group incentives; now it provides organizational incentives.

Question

Quizplus · Accepted Answer

Gainsharing involves group incentives based on performance improvements, while profit sharing involves distributing a portion of the company's profits to employees, which is an organizational incentive.

RedCat LLC, a Footwear Manufacturing Company, Practiced Gainsharing