Purchase Solution

Suggestion System, Cost Reduction vs. Profit Sharing

Not what you're looking for?

Ask Custom Question

Question #1
The suggestion system has been a major element in any employer plan to encourage greater employee involvement. What are the factors that failed many systems?

Question # 2
What are the major differences between the cost-reduction and profit-sharing program? What are the philosophic issues underlying each type of program? Provide examples of each but not examples you find in the textbook. Tell me in your own words using your examples. Which is the most appealing to you and why?

The book I am using is:
Compensation Management in a Knowledge -Based World (10th Ed.) Richard I. Henderson

Purchase this Solution
Solution Summary

The solution gives a 432-word explanation of the suggestion system of a company and the major differences between the cost-reduction and profit-sharing programs.

Solution Preview

Suggestion system fails due to numerous reasons. First of all, lack of support from the management is a major cause of failure for the system. Another cause of failure is lack of proper administration of the system and weaknesses in structure, procedures and processes. Employees often lack to understand the objectives and goals of the system and thus, do not participate in the system with full interest and enthusiasm. Lack of effective rewards and recognition is also a major cause of failure of the system. Suggestion system can also fail if employees do not find the system fair and consider it biased towards certain employees. In order to reap the ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
Recent Feedback
  • "Thanks"
  • "Thanks"
  • "Very good! "
  • "thanks"
  • "Thank you!"
Purchase this Solution
Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Outsourcing Hospitals

    It would also call for a reduction in staff and a reduction in supply acquisition. The second suggestion was to outsource medical records transcription to a Pakistani company.

  • Employee Management/Incentive Multiple Choice Questions

    a) employee stock ownership plan b) deferred profit sharing plan c) current profit sharing plan d) employee stock option plan 6.

  • Care enough to confront the truth. Does your company conduct

    Is such acknowledgement manifested through rewards and profit sharing or is it superficial?

  • Transfer Pricing Concepts

    Its Profits will reduce by following: For Part 101: Reduction in Profits= Reduction in Sales-Reduction variable cost =1000*(1000-700) =$300000 For Part 201: Reduction in Profits= Reduction in Sales-Reduction variable cost =500*(2000-1200) =

  • Healthcare Business Related Issues

    452346 Health care issues: Risk, retiree health insurance, cost sharing vs cost shifting, Medicaid, total cost increase, legislation, Medicare, government 1.

  • Five Forces Framework knowledge for Coca-Cola and Pepsi

    Through their cost reduction initiatives that companies are able to minimize cost of doing business which in turn leads to profit retention.

  • Calculating expected profit of using new system

    Interest savings=$427500*4.5%= $19237.5 Cost of operating lock box system=$28,500 Expected profit=19237.5-28500=-$9262.5 Cost of lock box system is more than interest savings. Lock box system is not advisable in the given scenario.

  • Diversification and vertical integration

    Significant operating efficiencies and cost reduction because cost of inputs/raw materials decrease due to absence of profit margin. Further, economies of scale also reduces cost of production.

  • Centrally Organized Health Care

    There is cost-sharing for dental care, outpatient prescription drugs, and optometry services. Residents have complementary private insurance to cover cost sharing, and services not fully covered by the government.

View More Related Solutions