For Five Years,Speed-All Production Systems Offered $500 Bonuses to Individuals

question 94

Multiple Choice

For five years,Speed-All Production Systems offered $500 bonuses to individuals who identified ways to reduce costs by at least $1,000 per year.In the first year of that incentive program,23 employees earned the bonus,but last year,only 7 submitted ideas,and only two of the ideas would actually save more than a few dollars.The company's HR director suggests that the company is likely to see more improvement if it replaces individual incentives with a gainsharing plan.Which of the following statements best supports this argument?

• A) Gainsharing succeeds regardless of whether employees understand how performance is measured.
• B) Gainsharing is likely to succeed under almost any organizational conditions.
• C) Gainsharing broadens employees' horizons beyond the range of activities they can influence.
• D) Gainsharing measures oversimplify the complex responsibilities of production work.
• E) Gainsharing expands employees' thinking beyond their individual interests.

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