When the manufacturing department cut waste by 10%,the organization paid each member of the department $500 (a portion of the savings)as a part of the organization's ______ program.

Question

Quizplus · Accepted Answer

The program being described is gainsharing, which is a system by which employees receive a portion of the cost savings resulting from their productivity improvement efforts. This typically takes the form of a cash bonus, as in this case. Profit sharing, employee stock ownership plans, and stock options are all different types of employee incentive programs, but they do not necessarily involve sharing the savings from cost reduction efforts in the same way that gainsharing does.

When the Manufacturing Department Cut Waste by 10%,the Organization Paid