Which of the following plans allows employees to share in cost savings or productivity gains realized by their efforts?
A) Stock options
B) A bonus pay plan
C) A merit pay plan
D) Gain sharing

Question

Quizplus · Accepted Answer

Gain sharing is a plan that allows employees to share in the cost savings or productivity gains realized by their efforts. It is designed to encourage employees to work together to identify and implement cost-saving or productivity-enhancing measures, and to share in the rewards of these efforts. Stock options are a form of equity compensation, while bonus pay and merit pay plans are focused on rewarding individual performance, rather than teamwork and organizational success.

Which of the Following Plans Allows Employees to Share in Cost