Gainsharing is an example of an incentive system that is "self-funding."

Question

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Gainsharing is a type of incentive system where employees are given a portion of the savings generated from their efforts to improve the efficiency of work processes, reduce waste or improve quality. This means that the rewards paid out to employees come from the cost savings or increased revenue generated by their actions. As a result, the gainsharing system is considered self-funding and does not require additional resources beyond the improvements made by employees.

Gainsharing Is an Example of an Incentive System That Is