Bill Leung is the HR Director for Copper Inc., a mining firm.The business has been losing money over the past three years due to a worldwide slump in copper prices, and no end is in sight.The pressure is on to reduce labour costs and increase productivity.Bill must recommend a plan for the research department staff.It's difficult to assess researchers' performance because of the kind of work they do.Recently, a number of researchers have been laid off because of the company's losses, and so each staff member must get involved in new kinds of projects.Flexibility and communication between project team members is very important.What kind of incentive plan would meet Bill's needs best

Question

Quizplus · Accepted Answer

In this situation, the best incentive plan would be gainsharing. Gainsharing is a type of incentive plan that promotes teamwork and collaboration among employees. It is based on the idea that if employees work together to improve productivity and reduce costs, then they will share in the benefits of the savings generated. This type of plan would be a good fit for Copper Inc. because it encourages collaboration between project team members, which is important given the need for flexibility and communication. Additionally, it ties rewards to cost savings and productivity improvements, which aligns with the company's goals of reducing labour costs and increasing productivity. Skill-based pay, piece rate, profit sharing and ESOP are not as suitable in this situation, as they do not promote collaboration and teamwork as well as gainsharing.

Bill Leung Is the HR Director for Copper Inc