Four Years Ago, Acme Tool and Die Profit-Sharing Plan: Explained Employee Productivity Increase

Acme Tool and Die Profit-Sharing Plan

Four years ago, Acme Tool and Die included its employees in a profit-sharing plan in which workers started receiving quarterly bonuses based on the company's profits. Since this plan was initiated, worker productivity at the company has nearly doubled.

Acme Tool and Die, a manufacturing company, implemented a profit-sharing plan for its employees four years ago. This plan rewarded workers with quarterly bonuses, determined by the company's profits. As a result of this initiative, the productivity of employees at Acme Tool and Die has almost doubled over the past four years.

Explanation

This productivity increase is best explained in terms of,

Answer:

Operant conditioning.

Explanation:

Operant conditioning is defined as an associative learning process where a behaviour is strengthened by reward, reinforcement or punishment. It is also called instrumental conditioning.

Association is made between a behaviour and the consequences of that behaviour.

In ACME Tool, the employees are given quarterly bonuses from profit sharing. This has led to an increase in productivity.

The employees have been conditioned to associate bonuses with better performance. So they perform well in the job in order to get the bonus.

How did the profit-sharing plan at Acme Tool and Die contribute to the increase in worker productivity? The profit-sharing plan at Acme Tool and Die contributed to the increase in worker productivity by implementing a system where employees received quarterly bonuses based on the company's profits. This system of rewarding employees for their performance through bonuses reinforced positive behavior and incentivized workers to enhance their productivity in order to earn the bonuses.
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