Asked by Kayla Renay on Jun 10, 2024
Verified
What is a key difference between gain-sharing and organizational performance pay plans?
A) Unlike organizational level plans,gain sharing can be applied to not-for-profit and government organizations.
B) Gain sharing results in more pay for employees.
C) Unions support organizational level pay plans but not gain sharing.
D) There are more free riders in gain-sharing plans.
Gain-Sharing
A compensation strategy where employees receive financial rewards based on performance improvements or cost savings achieved by their efforts.
Organizational Performance
A measure of how efficiently and effectively a company reaches its goals and satisfies its stakeholders' expectations.
- Understand the implications of gain-sharing and goal-sharing programs.
Verified Answer
HH
Hadeel HazzaaJun 13, 2024
Final Answer :
A
Explanation :
Gain sharing can be applied to not-for-profit and government organizations, whereas organizational performance pay plans are typically used in the private sector.
Learning Objectives
- Understand the implications of gain-sharing and goal-sharing programs.