A management report identified the following labour usage ratios for a window manufacturer in Richmond,British Columbia: 1.4 hours of labour per window in 2015; 1.25 hours of labour per window in 2016.Management makes the arbitrary decision to set next year's gain-sharing cutoff at 1.325 labour hours per window (the average of the 2015 and 2016 figures).Which gain-sharing plan is management using?
A) Scanlon plan
B) family of measures plan
C) Rucker plan
D) Improshare plan

Question

Quizplus · Accepted Answer

The management is using the Improshare plan, which is a gain-sharing plan that sets a productivity target based on historical performance data. The cutoff of 1.325 labour hours per window is an arbitrary productivity target, and employees will receive a bonus if they are able to meet or exceed it by reducing labour hours per window.

A Management Report Identified the Following Labour Usage Ratios for a Window