The management of Jeremynt Inc., a public relations firm, gives each of its teams the responsibility of increasing their productivity through measures developed by the team members and approved by the respective team managers. The company then measures the team-level productivity, and the cost savings resulting from the improvements in productivity are split among its employees. In this scenario, Jeremynt Inc. is most likely using a group incentive system called _____.

A) profit sharing
B) a fixed incentive plan
C) a sales commission
D) gainsharing

Question

Sandeep Nagre · Accepted Answer

Final Answer : D, Explanation :  Gainsharing is a system where improvements in group productivity lead to financial rewards for the group. Jeremynt Inc.'s approach of measuring team-level productivity and sharing the cost savings among employees aligns with the principles of gainsharing.

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