Rayshard works for an automobile salvage firm.Last year he started going to monthly meetings with managers and coworkers to evaluate labor-saving ideas.One idea, raising the crane level by 8 feet to clear the building, saved them $2 million.Each of the employees received a $200 bonus for the implementation of that idea.What kind of compensation system is used?
A)Piecework
B)Time-saving bonus
C)Merit pay
D)Scanlon Plan
E)Group incentive

Question

Quizplus · Accepted Answer

The Scanlon Plan is a type of gainsharing program where employees receive bonuses for cost-saving measures, particularly those that improve labor efficiency. The scenario describes a situation where employees collectively benefit from a cost-saving idea, which aligns with the principles of the Scanlon Plan.

Rayshard Works for an Automobile Salvage Firm