Author Question: In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans. ... (Read 73 times)

Mr.Thesaxman

  • Hero Member
  • *****
  • Posts: 514
In a brief essay, discuss the difference between annual bonuses for employees and gainsharing plans.
 
  What will be an ideal response?

Question 2

McDonald Manufacturing contributes cash to a trust established to purchase shares of McDonald stock for employees. Which of the following is most likely offered by McDonald Manufacturing?
 
  A) cash plans
  B) Lincoln incentive systems
  C) deferred profit-sharing plans
  D) employee stock ownership plans



duy1981999

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

Answer: Most firms have annual bonus plans aimed at motivating managers' short-term performance. Short-term bonuses can easily result in plus or minus adjustments of 25 or more to total pay. Three factors influence one's bonus: eligibility, fund size, and individual performance. Gainsharing is an incentive plan that engages many or all employees in a common effort to achieve a company's productivity objectives, with any resulting cost-savings gains shared among employees and the company. Popular gainsharing plans include the Scanlon, Lincoln, Rucker, and Improshare plans.
The basic difference among these plans is how employers determine employee bonuses. The Scanlon formula divides payroll expenses by total sales (or, sometimes, by total sales plus increases in inventory). In one version of the Lincoln incentive system, first instituted at the Lincoln Electric Company of Ohio, employees work on a guaranteed piecework basis. The company then distributes total annual profits (less taxes, 6 dividends to stockholders, and a reserve) each year among employees based on their merit rating. Most firms customize their gainsharing plans.

Answer to Question 2

Answer: D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

For a complete list of videos, visit our video library