Gainsharing plans differ from profit-sharing plans in that they:
A)use organization-wide performance parameters.
B)distribute payouts more frequently.
C)make lump sum payments.
D)can be attached to all types of jobs in the organization.
E)discourage pursuit of broader goals of the group.

Question

Quizplus · Accepted Answer

Gainsharing programs offer a means of sharing productivity gains with employees. Although sometimes confused with profit sharing plans, gainsharing differs in two key respects. First, instead of using an organization-level performance measure (profits), the programs measure group or plant performance, which is likely to be seen as more controllable by employees. Second, payouts are distributed more frequently and not deferred.

Gainsharing Plans Differ from Profit-Sharing Plans in That They