ERIC Number: ED224932
Record Type: Non-Journal
Publication Date: 1981-Mar-3
Reference Count: N/A
Productivity Sharing Programs: Can They Contribute to Productivity Improvement?
General Accounting Office, Washington, DC.
Productivity sharing plans were studied to determine how they operate, what benefits result, and whether long-term increases in productivity can be realized through the program. Thirty-six firms were interviewed that had productivity sharing plans. Nine firms that had either rejected adoption of a productivity sharing plan or were still considering implementing one were also interviewed. Productivity sharing programs were found to have evolved from individual incentive systems to group incentive systems. Besides profit sharing, the three most commonly cited group-gain sharing plans were Scanlon, Rucker, and Improshare. Information obtained from employees, union representatives, and firm officials provided evidence of monetary benefits and nonmonetary benefits (improved labor-management relations, fewer grievances, less absenteeism, and reduced turnover). The majority of respondents expressed satisfaction with their plans and believed current benefits warranted their continuation. Depending on a company's reason(s) for adopting a productivity sharing plan, certain factors varied, including types and numbers of employees covered, roles of consultants, basis and conditions for bonus payments, and amount of assurance employees receive that payments are equitable. Difficulties encountered with productivity sharing plans were development of a workable bonus formula and resistance by employees and management. (YLB)
Descriptors: Adults, Employee Attitudes, Employees, Employer Attitudes, Incentives, Interviews, Motivation, Motivation Techniques, Participant Satisfaction, Productivity, Program Effectiveness
U.S. General Accounting Office, Document Handling and Information Services Facility, P.O. Box 6015, Gaithersburg, MD 20760 (First five copies--free; additional copies--$3.25 bound, $1.00 unbound).
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC.