Difference between a Plan a Principle and a Process

PLAN: A scheme of action or procedure.

PRINCIPLE: A fundamental, primary or general law or truth from which others are derived.

PROCESS: A continuous action, operation, or series of changes taking place in a definite manner.

Early Scanlon Plans had a definite structure and bonus formula. Employees elected representatives to production committees. Production committees elected representatives to a screening committee. Participation was encouraged through a suggestion system. Bonuses were paid when labor costs were reduced below a historical baseline. Dr. Frost introduced fixed principles and flexible processes into Scanlon practice. As long as the four principles were followed, organizations were encouraged to develop structures and processes that met their unique needs. The Frost/Scanlon Principles and Processes have been described like the roots of a tree. They support and nourish the tree and do not change. The leaves represent current programs that change with the seasons.