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The five basic features of Scanlon plan of incentive payment are

  • A.control, individuality, competence, involvement and sharing of benefits.
  • B.cooperation, identity, competence, involvement and sharing of benefits.
  • C.control, individuality, commitment, involvement , and sharing of benefits.
  • D.cooperation, identity, control, involvement and sharing of profits.

Answer: B

The five basic features of the Scanlon plan are cooperation, identity, competence, involvement and sharing of benefits. The plan is a group incentive scheme that rewards labour-cost savings shared between workers and the company. The wrong options replace words in this list: control and individuality are not features of the plan, commitment is not one, and the plan shares benefits, not profits, since the bonus comes from savings in labour cost against a norm and not from company profit.

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