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PHR · Question #168

Which of the following are the benefits of gainsharing programs? Each correct answer represents a complete solution. Choose three.

The correct answer is A. Aligns employees to organization goals C. Enhances employees focus and awareness D. Helps organization to achieve improvement in key performance measures. Gainsharing programs deliver organizational value primarily by aligning employee behavior with strategic goals, sharpening performance awareness, and driving measurable improvement in key metrics.

Compensation and Benefits

Question

Which of the following are the benefits of gainsharing programs? Each correct answer represents a complete solution. Choose three.

Options

  • AAligns employees to organization goals
  • BEmployees are paid on the basis of group performance rather than individual performance
  • CEnhances employees focus and awareness
  • DHelps organization to achieve improvement in key performance measures

How the community answered

(29 responses)
  • A
    79% (23)
  • B
    21% (6)

Why each option

Gainsharing programs deliver organizational value primarily by aligning employee behavior with strategic goals, sharpening performance awareness, and driving measurable improvement in key metrics.

AAligns employees to organization goalsCorrect

Gainsharing directly links employee rewards to organizational performance outcomes, naturally aligning individual and team efforts with the company's strategic improvement goals.

BEmployees are paid on the basis of group performance rather than individual performance

While gainsharing is group-oriented, the statement that employees are paid on the basis of group performance rather than individual performance describes a feature of group incentive plan design in general, not a benefit of gainsharing - it is a characteristic or structural element, not an outcome or advantage the program delivers.

CEnhances employees focus and awarenessCorrect

Because employees share in the financial results of performance improvements, gainsharing heightens their focus on operational efficiency and increases awareness of how their daily actions affect measurable outcomes.

DHelps organization to achieve improvement in key performance measuresCorrect

The structured measurement and reward mechanism inherent in gainsharing motivates sustained effort toward specific key performance indicators, helping the organization achieve targeted improvements in areas such as productivity, quality, and cost reduction.

Concept tested: Benefits and outcomes of gainsharing programs

Source: https://www.shrm.org/topics-tools/tools/toolkits/designing-and-managing-incentive-compensation-plans

Topics

#gainsharing#performance alignment#employee incentives#compensation programs

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