Final answer:
Gainsharing is the system that pays incentives to group members if their collective performance exceeds a set standard.
Step-by-step explanation:
The production standard system that involves setting a standard for a specific work group and then paying incentives to the group members if they exceed the standard is called gainsharing. Unlike piece-rate pay, which pays employees for each unit produced, gainsharing focuses on improving performance and sharing the resulting financial gains. Gainsharing is distinct from profit-sharing, which distributes a portion of company profits, and from skill-based pay, which compensates employees based on the range of skills they can apply to their work.