HRM303 Chapter Notes - Chapter 11: Fide, Libertarian Socialism, Income Tax
10 Aug 2016
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Defining feature of gain sharing plans is that whenever employees in particular work group are able to reduce costs of increase productivity. Scanlon plan: gain sharing plan that creates mechanisms for employee participation in developing productivity improvements and that shares the financial benefits of those improvements with employee group that generated them. Rucker plan: gain sharing plan similar to scanlon plan but that expresses labour costs as percentage of value added. Improshare: gain sharing plan that focuses on labour hours per unit of output and that does not usually include worker participation: disadvantage: it does not take other cost savings into account. Work groups or teams receive a bonus when certain prespecified performance goals are met. Single goal plans: simplest and focus attention on one key goal (customer satisfaction) Multigoal plans: single goal plans cause other behaviours to be neglected so most firms use multigoal plans to cover range of behaviour. Financial funded plans: combine two sets of criteria.
