Asked by
Heidy Perez
on Nov 06, 2024
Verified
Heter and Co., a multinational firm, invited groups of employees to suggest strategies for reducing cost. The firm implemented one of the strategies suggested by a group and made huge gains. If the firm uses the Scanlon plan to distribute the gains, the firm is most likely to:
A) distribute the majority of the total gain to its executives.
B) distribute about one-third of the total cost savings among its employees.
C) distribute the cost savings to the entire organization.
D) distribute the total gain equally and exclusively among all the members of the group that came up with the strategy.
Scanlon Plan
A gain-sharing program that rewards employees for incremental improvements in productivity and cost savings.
Cost Savings
The action of reducing expenses and improving efficiency in operations, often through methods such as budget cuts, restructuring, or investing in technology.
Suggest Strategies
The process of proposing plans or methods to solve specific problems or achieve objectives, typically within a business or organizational context.
- Assess and differentiate between personal and group incentive programs, highlighting profit sharing and gain sharing approaches.
Verified Answer
KA
Learning Objectives
- Assess and differentiate between personal and group incentive programs, highlighting profit sharing and gain sharing approaches.