Question

The XYZ Manufacturing Co. uses a gain sharing plan that gives incentives to employees to finish products rather than to incentivize dollar savings. Therefore, this company measures productivity as the ratio of standard labor hours and actual labor hours. Which kind of gain sharing program does XYZ Manufacturing Co. use?


A) Improshare

B) Rucher

C) Scanlon

D) SVOP

Answer 1

Answer:

A) Improshare

Explanation:

Based on the information provided it can be said that in this scenario the gain sharing program being used by XYZ Manufacturing Co.  is improshare.  This term refers to “Improved Productivity through Sharing” and is a type of bonus that is given to employees for having increased productivity. Meaning that they produce more output in the same time as before.