Rucker gain sharing plan is easier to implement as it uses aggregated data and can cover all employees, while Scanlon gain sharing plan is closely related to the activity of the committees, and is more individualistic, because only the teams or employees who suggested a good performance improvement initiative will be receiving the bonuses. Scanlon approach might be good for a diverse company where there are many different departments or branches, and these departments are not overly large. Rucker plan would better work for the companies employing a large number of workers performing similar type of work; for service sector, Rucker plan might also work better because for services, there is a great emphasis on customer interaction, and the processes are less formalized than for the majority of product companies. Improshare is optimal for the companies where the role of labor is high in the final product or service costs, and where it is possible to establish a clear relationship between labor hours and results. Rucker and Scanlon plans also promote teamworking and innovation, which should further help to improve the overall performance of the company.

References

Martocchio, J.J. (2009). Strategic Compensation. Pearson Education.