What incentive program rewards employees based on improvements in productivity across the company?

The correct choice is the Gainsharing program, which is specifically designed to enhance productivity and share the financial benefits of improved efficiency among employees. Gainsharing incentivizes employees by rewarding them for collaborative efforts that lead to improved performance and reductions in costs. This aligns the interests of employees with those of the organization, fostering teamwork and a shared sense of purpose.

In a Gainsharing program, rather than focusing solely on individual performance, the emphasis is on performance improvements at the group or company level. Employees are typically encouraged to suggest and implement changes that lead to increased productivity, which then translates into monetary rewards based on the overall gains achieved.

Other incentive programs serve different purposes, such as the Scanlon Plan, which also promotes productivity but in a way that is more structured around specific processes. Piece-rate incentives focus on rewarding individuals based on the number of units they produce, which can lead to competition rather than cooperation. Profit-sharing plans distribute a portion of company profits to employees, but this is generally based on overall profitability rather than specific improvements in productivity. Thus, Gainsharing stands out as the program most directly tied to enhancing and rewarding collective productivity improvements.