A Payment Plan That Induces Better Worker Effort by Linking

question 103

Multiple Choice

A payment plan that induces better worker effort by linking compensation to revenues of the firm is known as:

• A)Revenue sharing.
• B)Profit sharing.
• C)Piece rate sharing.
• D)Spot checking.

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Definitions:

Gain-Sharing

A plan that allows employees to share in cost savings or productivity gains realized by their efforts.

Net Profits

The financial gain attained by a business after subtracting all operating expenses, interest, taxes, and any other necessary expenditures from its total revenue.

Fringe Benefits

Fringe benefits are additional advantages or compensations provided to employees on top of their regular salary, such as health insurance, paid vacations, and retirement plans.

Employee Assistance Programs

Employee Assistance Programs are workplace initiatives designed to help employees deal with personal problems that might adversely impact their work performance, health, and well-being.