Outcome # 4

Question 1

Group incentive plans

Answer 1

Cost reduction and total quality management

encourage a cooperative—rather than individualistic

Question 2

team incentive plans

Answer 2

A compensation plan in which all team members receive an incentive bonus payment when production or service standards are met or exceeded

Question 3

establishing team incentive payments

Answer 3

1. set performance measures on which incentive payments are base
2. the size of the incentive bonus must be determined
3. payout formula is established and fully explained to employees

Question 4

gainsharing plans

Answer 4

Programs under which both employees and the organization share financial gains according to a
a predetermined formula that reflects
improved productivity and profitability