In performance-based pay, what is the main goal of gainsharing?

Gainsharing primarily aims to incentivize teams based on collective performance improvements. This approach focuses on encouraging collaboration and teamwork, where employees work together towards common goals that enhance productivity and efficiency. By linking rewards to collective performance, gainsharing creates a shared sense of ownership among team members, motivating them to contribute to the organization's success.

The structure of gainsharing fosters an environment where employees can see the direct impact of their teamwork on performance outcomes. This makes the incentive not just about individual contributions but harnessing the collective efforts of a group, which is crucial for driving overall organizational performance. The emphasis is on improving processes, increasing productivity, and ultimately sharing the financial benefits of these improvements among team members.

This contrasts with other options, where focus might be on individual performance, equal distribution without regard for contributions, or tenure-related bonuses, which do not align with the team-oriented model of gainsharing.