In which of the following, the payment of bonus is linked to performance of specific employees or group…
Gain-sharing plans (such as Scanlon, Rucker, and Improshare plans) link group bonus payments directly to measurable productivity, cost savings, or performance improvements…
Choose your answer
In which of the following, the payment of bonus is linked to performance of specific employees or group of employees ?
(a) Profit sharing
(b) Gain sharing plans
(c) Social system plans
Answer and explanation
Correct answer B
Gain-sharing plans (such as Scanlon, Rucker, and Improshare plans) link group bonus payments directly to measurable productivity, cost savings, or performance improvements achieved by specific employees or operational teams ((b) only), whereas Profit-sharing distributes a percentage of overall corporate accounting profits.
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UGC NET Management