Final answer:
The Scanlon Plan is a popular group incentive plan for sharing labor cost savings, which offers bonuses for productivity improvements and helps align the interests of employees and management. The correct option is d.
Step-by-step explanation:
One of the most popular group incentive plans for sharing labor cost savings is the Scanlon Plan. This plan is designed to encourage productivity and cost-saving measures among workers by sharing the resulting savings with the employees. Under a Scanlon Plan, employees receive a bonus for productivity improvements that exceed a certain threshold. The bonus is usually determined by a formula that takes into account the amount saved by efficiency improvements. This incentive approach promotes collaboration and innovation, as employees are motivated to work together to find ways to reduce costs and improve productivity.
Moreover, the Scanlon Plan can result in better labor-management relations, as it aligns the interests of employees and management by focusing on the overall efficiency and profitability of the organization. The increased use of machinery and physical capital equipment can enhance productivity further, thereby supporting the efficiency goals of the incentive program.