Last month a company produced 1000 items/10,000 person hours and this month they produced 1000 items/9,000 person hours. Dividing the productivity savings between company and employees is an example of

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Gainsharing is a system where the savings from increased productivity are shared between the company and its employees. In this scenario, the company has saved on person hours, and therefore, the savings should be shared with the employees using a gainsharing plan. Profit sharing is a system where a portion of the profits of a company is shared with its employees, which is not relevant to the information given. A piece-rate plan is a system where employees are paid based on the number of units they produce or complete, which is not relevant to the information given. A variable-pay plan is a system where employees are paid according to their performance, which is also not relevant to the information given. Recognition program savings are not relevant to the scenario given.

Last Month a Company Produced 1000 Items/10,000 Person Hours and This