Question

The management of a health center has decided to implement a compensation system that rewards employees when the organization achieves improvements in efficiency, productivity, and cost savings. Which of the following best fits this approach to compensation?

a. Profit-sharing plans
b. Gain-sharing plans
c. Piece-rate incentives
d. A bonus system paid our annually

Answer 1

Answer: The answer is B: Gain-sharing plans

Step-by-step explanation:

Gainsharing involves bonuses given as a result of the performance of specific employees or group of employees. It helps to expand the employees' thinking beyond their individual interests and improve organizational performance. Employees will be able to collaborate to improve performance.