In designing gain-sharing plans,why is there a need to decide on the historical baseline against which to compare productivity?
A) to determine whether real productivity gains actually occurred
B) to satisfy the unions
C) to allow for flexibility
D) to increase employee participation

Question

Quizplus · Accepted Answer

The historical baseline is necessary in order to determine whether there have been real productivity gains. Without a baseline, it would be impossible to accurately measure the effectiveness of gain-sharing plans in improving productivity.

In Designing Gain-Sharing Plans,why Is There a Need to Decide