Gainsharing Can Motivate Employees as Much as Individual Plans Do

question 95

Multiple Choice

Gainsharing can motivate employees as much as individual plans do because of the:

• A)controllable nature of the performance measure and the frequency of payouts.
• B)need to change and the strong commitment to organizational improvement.
• C)direct relationship with organizational success and organizational goals.
• D)relatively simplistic performance targets and large payouts.
• E)high levels of employee ownership and organizational performance-based compensation.

Calculate and interpret the turnover ratio within the context of ROI.

Recognize the effects of new investments on a company's overall financial performance.

Apply the concepts of ROI and residual income in real-world divisional performance evaluation scenarios.

Understand the concept of residual income and how it's calculated for a division.

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Definitions:

Producer's Risk

Producer's risk is the probability of rejecting a quality product during the inspection process, falsely identifying it as defective.

Consumer's Risk

The probability of accepting a lot or batch of goods that contains a greater number of defects than a predetermined level, leading to consumer dissatisfaction.

Acceptance Sampling

A statistical quality control method where a random sample of items from a lot is tested to determine the acceptance or rejection of the entire lot.

Bad Lots

Refers to batches of goods or products that do not meet the quality standards set by the manufacturer or industry.