Question

Karen Moore is a new employee with Cars R Us. One of her first responsibilities as the new HR Director is to create an incentive program for the organization. Cars R Us specializes in selling and leasing mid-priced vehicles across the United States. The organization has locations in each state in the four main regions of the United States. Recently, however, employee performance has been declining along with the unfortunate decline of car sales.
Before Ms. Moore creates an incentive program, she knows she will need to identify what is best practice for the industry, what the organization has done to reward the employees in the past as well as know what the financial constraints are to the new incentive program. Once completed, she will be able to implement a well-constructed incentive program established with the goals of increasing employee job satisfaction and performance as well as improve the companyâs financial position.
One of the first items on Ms. Mooreâs agenda is to identify the preferred method of earning rewards. In reviewing the results of a recent survey completed by more than 60 percent of the employees, she learns that the employees are competitive and are interested in group incentives programs as well as individual rewards.
Ms. Moore recommends Cars R Us include a _______ system that will provide all employees to receive a portion of the increase in productivity and effectiveness.
A. gainsharing
B. cost
C. equity
D. reduction
E. timesharing

Answer 1

Answer: A. gainsharing

Explanation:

A Gainsharing system is the one that Ms. Moore recommended because it involves providing employees with a portion of the increase in gains accrued from increased productivity and effectiveness.

Gainsharing ensures that employees are motivated to work harder for the company because they get a share if the company improves its productivity so they will have a vested interest in ensuring that the company becomes better.