Final answer:
Gainsharing plans involve employees suggesting strategies to improve efficiency and reduce costs, with savings distributed among the employees. Gains are usually not distributed based solely on individual suggestions but are a result of collective effort, making the statement in the question false.
Step-by-step explanation:
The question relates to gainsharing plans in a business context. Gainsharing is an incentive strategy in which employees are encouraged to suggest ways to improve productivity and reduce costs. The concept often works based on teams or groups suggesting efficient strategies, and then the monetary gains or savings achieved from these strategies are distributed among the employees. Typically, gains are not distributed based on who suggested the cost-reduction strategy alone but rather shared among the team or employees who participated in the effort.
Because employees stand to directly benefit from the success of the business, there is generally an increase in productivity as workers are motivated to contribute to the efficiency and profitability of the company. As such, the assertion that gains are distributed according to who suggested the cost-reduction strategy is false. Gainsharing plans are designed to foster collaboration and collective effort rather than individual suggestions.