Final answer:
The Scanlon Plan is unique among gainsharing plans as it begins with team or group productivity metrics and involves employees in efficiency improvements to achieve cost savings, from which they receive a significant portion as rewards.
Step-by-step explanation:
The Scanlon Plan is a type of gainsharing plan that is distinct from other gainsharing programs primarily because it emphasizes teamwork and employee involvement in improving productivity and cost savings. Unlike other gainsharing plans which may offer rewards based on overall organizational performance or various metrics, the Scanlon Plan begins with the measurement of team or group productivity and focuses on sharing the savings achieved from the enhanced productivity with employees. Crucially, the Scanlon Plan involves employees in the problem-solving process to identify and implement efficiency improvements, with savings shared through a pre-determined formula.
One of the distinguishing features of the Scanlon Plan is that the reward is specifically linked to the cost savings realized by the efforts of employees, and it promotes company-wide cooperation towards continuous improvement. Another key element is that employees typically receive a significant portion of the cost savings, which helps to align their interests with the company's financial performance. This plan does not replace annual merit increases but acts as an additional performance-based bonus.