A mid-sized city introduced a reward system whereby employees would find ways to reduce costs and increase work efficiency.Every employee would receive a portion of the surplus budget resulting from these cost savings.This city is using:
A) a gainsharing plan.
B) a commission system.
C) a piece-rate plan.
D) a stock option plan.
E) none of the above.

Question

Quizplus · Accepted Answer

The mid-sized city is using a gainsharing plan where employees receive a portion of the surplus budget resulting from cost savings. This system encourages employees to work towards reducing costs and increasing work efficiency. Commission system, piece-rate plan, and stock option plan are not relevant to this scenario.

A Mid-Sized City Introduced a Reward System Whereby Employees Would