When the group exceeds a predetermined level of performance,which of the following incentive pay systems provides group bonuses?
A) Merit-pay systems
B) Gain sharing
C) Profit sharing
D) Piece-rate pay systems
E) Lump-sum bonuses

Question

Quizplus · Accepted Answer

Gain sharing is an incentive pay system that provides group bonuses when the group or team exceeds a predetermined level of performance. This system is designed to motivate and reward employees for achieving specific targets or goals. In gain sharing, a portion of the cost savings or productivity gains achieved by the group or team is shared among the members as a bonus. This system is different from profit sharing, which distributes a percentage of the company's profits among all employees, regardless of their individual or team performance. Therefore, the best choice for this question is B, gain sharing.

When the Group Exceeds a Predetermined Level of Performance,which of the Following