________ is a formula-based group incentive plan that uses improvements in group productivity from one period to another to determine the total amount of money allocated
A) An employee stock ownership plan
B) Gainsharing
C) Profit sharing
D) A piece-rate pay plan
E) A merit-based pay plan
B
Explanation: B) Gainsharing is a formula-based group incentive plan. It uses improvements in group productivity from one period to another to determine the total amount of money allocated. It is different from profit sharing in that it ties rewards to productivity gains rather than profits. Employees in a gainsharing plan can receive incentive awards even when the organization isn't profitable.
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Indicate whether the statement is true or false.
Which of the following statements is false?
A) Assessment mutuals provide primarily fire and windstorm insurance. B) A stock insurance company is a profit-making venture in both life and property insurance. C) Dividends are paid to stockholders of stock companies. D) In stock companies, non-insured stockholders bear none of the risk of loss.