What is scanlon plan, HR Management

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Q. What is Scanlon plan?

Scanlon plan: under this plan, a constant production (ratio of wages to the sales value) of the added value of output is paid to the workers who are responsible for the addition of the value. The added value if the change in the market value (including profit) resulting from an alteration in the form, location or availability of a product or service excluding the cost of of the purchased materials or services used in the production.


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