The Scanlon plan motivated employees to propose and implement cost-cutting strategies because a percentage of the cost savings achieved during a specified time is distributed to the employees.

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The Scanlon plan, also known as the Scanlon formula or Scanlon profit-sharing, encourages employee involvement and participation in cost-saving initiatives by offering a percentage of the savings achieved during a specific period as a bonus or profit-sharing payment. Therefore, employees are motivated to propose and implement strategies to reduce costs and increase efficiency, which ultimately benefits the organization and the workers.

The Scanlon Plan Motivated Employees to Propose and Implement Cost-Cutting