Problem:
The CEO of your organization stops you in the hallway and inquires about gain-sharing. It is clear to you that he is mixing up gain-sharing and profit-sharing concepts. You suggest that you meet with him tomorrow to go over the basics of gain-sharing and profit-sharing plans.
Briefly describe what gain-sharing and profit-sharing plans involve. What conditions should exist prior to implementation to make it easier to implement? What are the advantages and disadvantages of group incentives like gain-sharing and profit-sharing plans?