What are advantages and disadvantages of scanlon plan?
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The Scanlon plan is a gainsharing program in which employees share in pre-established cost savings, based upon employee effort. Formal employee participation is necessary with the Scanlon Plan, as well as periodic progress reporting and an incentive formula.
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The Scanlon plan is a profit sharing plan in which representatives participate in pre-established cost savings plans which are based upon employee efforts.
Advantages
The Scanlon plan has been strongly utilized by various public and private organizations for several decades. These plans consolidate management, total workforce training, and extensive employee assistance with a reward scheme linked to business performance.
Disadvantages
The Scanlon Plan particularly as functioned by Carl Frost with the Scanlon Roadmap investment method takes too much time to complete. It is not uncommon for an association of 200–300 people to contribute a year which involves, investigates, and formulates a plan. The Scanlon Plan is the manager dependent.
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