What is the name for an incentive plan where improvements in group productivity determine the total amount of money that is allocated?
A) ESOP
B) gainsharing
C) profit sharing
D) piece rates
E) employee ownership

Question

Quizplus · Accepted Answer

This type of incentive plan is called gainsharing. In gainsharing, the total amount of money allocated is determined by improvements in group productivity, creating a shared benefit for all team members. ESOP (A) stands for Employee Stock Ownership Plan, in which employees own stock in the company they work for. Profit sharing (C) is a plan in which a portion of the company's profits are distributed to its employees. Piece rates (D) are a type of incentive plan in which employees are paid per piece of work completed, rather than a fixed salary or hourly rate. Employee ownership (E) generally refers to companies in which employees have some level of ownership in the company, but does not necessarily refer to a specific type of incentive plan.

What Is the Name for an Incentive Plan Where Improvements