Which of the following statements regarding incentive systems is FALSE?
A)Bonuses are often used at the executive levels.
B)About half of all American manufacturing firms use productivity incentives.
C)Profit-sharing systems provide some part of the profit for distribution to employees.
D)The Scanlon plan is based on individual productivity.
E)Increasing use of cross-training has led to increasing use of knowledge-based pay systems.

Question

Quizplus · Accepted Answer

The Scanlon plan is based on group productivity rather than individual productivity. The plan emphasizes employee participation in problem solving and decision making, with the goal of improving both productivity and working relationships.

Which of the Following Statements Regarding Incentive Systems Is FALSE