Asked by Jacqueline Camacho on May 06, 2024
Verified
Gain sharing is not a viable plan to use if no valid historical benchmark can be set.
Gain Sharing
A performance-based compensation strategy that rewards employees for contributing to their company's success through increased efficiency or profitability.
Historical Benchmark
A reference point derived from historical data against which current performance or achievements can be measured or compared.
- Identify the distinctions among multiple gain-sharing strategies and their functional underpinnings.
Verified Answer
TJ
TONYA JOHNSONMay 11, 2024
Final Answer :
True
Explanation :
The concept of gain sharing involves establishing a benchmark, measuring performance against it, and sharing the gains with employees. If there is no valid historical benchmark available, it becomes challenging to determine the gains and the share to distribute, making gain sharing a less effective plan.
Learning Objectives
- Identify the distinctions among multiple gain-sharing strategies and their functional underpinnings.