Which of the options presented represents an example of a group incentive plan?
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Answer: A. Scanlon Plan
Explanation
The Scanlon Plan is a well-known group incentive scheme that rewards workers based on labor cost savings and productivity improvements. This participatory management system distributes bonuses to all employees when organizational performance exceeds established cost baselines. Group incentive plans foster teamwork by linking bonus payouts to collective output rather than individual piece rates. Industrial engineering distinguishes between individual incentive systems and plant-wide group productivity bonus plans. Joseph Scanlon developed this formula in the 1930s to align worker compensation directly with overall manufacturing efficiency. Employee committees review suggestions continuously to reduce waste and lower production costs across the facility.
The Rowan Plan is an individual incentive scheme providing a variable bonus based on time saved completing tasks. The Bedaux Plan measures work in standard minute units, rewarding individual workers for exceeding standard output. The Taylor Differential Piece Rate System penalizes or rewards individual workers based strictly on daily output quotas.
- Subject
- Engineering
- Category
- Mechanical Engineering
- Topic
- —
- Difficulty
- medium
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