Harrah's Case
Gain sharing is a creative way to offer the motivational benefits of paying for performance for employees whose jobs aren't directly linked to profit. Some positions, such as salesman easily lend themselves to a pay for performance scheme such as commission, and other positions, such as upper level executive lend themselves to a profit sharing scheme. Unfortunately, many organizations have numerous employees who can't be compensated for their efforts through such straightforward methods. Gains sharing offers a creative solution to this problem by being able to reward the efforts of employees along lines that don't directly effect profits. The downside, of course, is that if you aren't careful with which objectives you choose to reward, you may encourage employees to behave in ways that don't help the company. A carefully chosen objective, however, can bring the same benefits of commissions or profit sharing to less dollar-oriented departments, such as customer service and technical support.
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