Asked by
shehara weerathunga
on Nov 06, 2024
Verified
Which of the following is a difference between gainsharing and profit-sharing incentive systems?
A) Gainsharing is a group incentive system, whereas profit sharing is an individual incentive system.
B) Gainsharing involves distributing savings among all the employees in a company, whereas profit sharing involves distributing savings among the members of a specific team.
C) Gainsharing involves sharing cost savings from productivity improvements with employees, whereas profit sharing involves distributing a portion of a company's gains to all employees.
D) Gainsharing is independent of a team's performance, whereas profit sharing is specific to the contributions of a work group.
Gainsharing
Is a team- and group-based incentive system designed to share the cost savings from productivity improvements with employees.
Profit-Sharing
A compensation strategy where employees receive a share of the company's profits, often as a bonus or part of their salary.
Productivity Improvements
Productivity improvements refer to increases in the efficiency of production processes, resulting in higher output for the same or lower input.
- Compare and contrast individual versus group incentive systems, including profit sharing and gainsharing.
Verified Answer
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Learning Objectives
- Compare and contrast individual versus group incentive systems, including profit sharing and gainsharing.