The logic behind gain-sharing plans is that:
A) reward systems such as pay for performance are practical only when performance can be easily and objectively measured.
B) those who are making lower salaries get larger percentage increases,whereas those earning higher salaries get a flat raise.
C) if everyone works to reduce cost and increase productivity,the organization will become more efficient and have more money to reward its personnel.
D) individuals who do superior work can be given increases greater than the rest of their colleagues.

Question

Quizplus · Accepted Answer

Gain-sharing plans are based on the idea that if everyone in the organization works together to reduce costs and increase productivity, the resulting financial gains can be shared with employees as incentives or bonuses. This approach encourages teamwork, cooperation, and a focus on achieving common goals, rather than individual performance only. Therefore, option C correctly describes the logic behind gain-sharing plans, as it emphasizes the importance of collective efforts towards improving the organization's overall performance and financial results. Option A is not directly related to gain-sharing plans but refers to a requirement for practical and objective performance measures for pay-for-performance systems. Option B is a statement about how to distribute raises and does not reflect gain-sharing plans. Option D is related to individual performance only, rather than group performance, and does not reflect the cooperative approach of gain-sharing plans.

The Logic Behind Gain-Sharing Plans Is That