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8
Scanlon Program
A Gain sharing program designed to save labor costs.
Uses a formula that bases distribution of rewards on a ratio of labor costs relative to total sales volume.
Example:
Estimate $100K needed to generate $500K in revenue.
Actual $80K generate $500K in revenue.
40% of $20K ($8K) distributed to employees, company keeps $12K
Uses a formula that bases distribution of rewards on a ratio of labor costs relative to total sales volume.
Example:
Estimate $100K needed to generate $500K in revenue.
Actual $80K generate $500K in revenue.
40% of $20K ($8K) distributed to employees, company keeps $12K
Flashcard info:
Author: robertsonsb
Main topic: Business Economics
Topic: Organizational Behavior
Published: 27.02.2010