After implementing some new initiatives, Jake’s workgroup managed to s

QUESTION

After implementing some new initiatives, Jake’s workgroup managed to save the company over $42,000 last quarter. To mark the achievement, every member of the team received a check for $1,800. What is the term for these payments?

A) profit sharing
B) stock options
C) commissions
D) bonuses
E) gainsharing

ANSWER

Answer: E
Explanation: E) Under a gainsharing system, a company’s savings, or “gains” achieved by employees’ efforts to reduce costs or increase productivity, are distributed to the employees.