BigCo is implementing a system where any savings resulting from an increase in output in fewer than expected hours are shared between the organization and the employee group on the basis of a preestablished formula.This is an example of a(n)___________.
A)Scanlon Plan
B)Rucker Plan
C)Improshare
D)Profit sharing

Question

Quizplus · Accepted Answer

Improshare is a type of gain-sharing plan where any savings resulting from increased productivity or efficiency are shared between the organization and the employee group based on a preestablished formula. The formula typically takes into account factors such as labor costs, production levels, and quality of output. The Scanlon Plan and the Rucker Plan are also types of gain-sharing plans, but they have different formulae and structures. Profit sharing, on the other hand, involves sharing a portion of the organization's profits with employees, but it is not directly tied to increased productivity or efficiency.

BigCo Is Implementing a System Where Any Savings Resulting from an Increase