Certified Human Resource Professional (CHRP) Practice Exam

Which of the following is a type of Scanlon plan?

1. Executive pay plan

2. Goal-sharing plan

3. Gain-sharing plan

4. Profit-sharing plan

The correct answer is: Gain-sharing plan

A Scanlon plan is a specific type of gain-sharing plan that focuses on improving productivity and efficiency within an organization by sharing the financial gains achieved from those improvements with employees. The primary objective of a Scanlon plan is to incentivize employees to collaborate and contribute to cost-saving initiatives that enhance overall performance. In this context, the key characteristics of a Scanlon plan include its emphasis on teamwork, employee involvement in decision-making, and the alignment of employee rewards with organizational success. These elements encourage a culture of collaboration and accountability, where employees feel engaged and motivated to contribute to the company’s goals. While other options like profit-sharing or goal-sharing plans involve sharing profits or reaching goals, they do not emphasize the cost-saving and productivity-enhancing elements central to a Scanlon plan. Therefore, recognizing the specific design and purpose of a Scanlon plan helps understand why it falls under the broader category of gain-sharing plans, which ultimately aligns employee performance with organizational success.