Scanlon plan

a type of gainsharing program in which employees are motivated to improve productivity by monetary bonuses and participation in solving production problems. A production committee made up of supervisors and employees is formed within each unit in an organization; this committee screens suggestions from employees for reducing costs and improving productivity. Gains, such as cost savings or the value of improved production, are shared with the whole group, not just the individuals making the suggestions. See also industrial democracy; participative decision making; quality circle. [Joseph Scanlon (1899–1956), U.S. union leader]