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School

Centennial College *

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Course

702

Subject

Management

Date

Apr 3, 2024

Type

png

Pages

1

Uploaded by SuperHuman0001

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Discuss the considerations you would use in deciding whether to apply gain sharing or goal sharing to a particular work group. Before deciding whether to apply gain sharing or goal sharing to a particular work group, it's important to understand the differences between the two. Gain Sharing is a system of management in which an organization seeks to increase profitability by motivating employees to improve their performance through the direct sharing of financial gains. The gains are often shared in the form of bonuses. Goal Sharing, on the other hand, is a system where employees are encouraged to meet specific performance goals, and rewards are given when these goals are met. The rewards can be non- monetary, such as recognition or promotions. Considerations for Gain Sharing « Financial Stability: Gain sharing works best in organizations that are financially stable and profitable. If the organization is struggling financially, it may not be able to afford the financial rewards associated with gain sharing. « Employee Influence: Gain sharing is most effective when employees have a direct influence on profitability. If employees’ actions don't significantly impact profits, gain sharing may not be effective. « Measurement: The organization must be able to accurately measure contributions and improvements. If it's difficult to measure performance, gain sharing may not be the best choice. Considerations for Goal Sharing When considering goal sharing, you should consider: e Goal Alignment: The goals set for employees should align with the organization’s overall objectives. If the goals are not aligned, employees may be rewarded for activities that don't contribute to the organization's success. « Goal Attainability: The goals should be challenging, but attainable. If goals are set too high, employees may become frustrated and disengaged. If they're set too low, they may not motivate employees to improve. » Recognition: The organization must be willing and able to provide recognition or rewards when goals are met. If the organization is not committed to recognizing achievements, goal sharing may not be effective. In conclusion, the choice between gain sharing and goal sharing depends on the specific circumstances of the organization and the work group. Both systems have their advantages and can be effective when implemented correctly.
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