Professional Documents
Culture Documents
Incentive Plans:
Gainsharing
Definition
Entity Production
Psychology
Encourage employees to view the company's success as benefiting
them personally. But the psychology behind the incentives is
somewhat different.
Gainsharing is more about challenging workers to take charge of
improving their own performance. Employees aren't just endorsing
a management strategy; rather, they're asked to be partners in
formulating and carrying out the strategy.
Administration
The Super Sack Manufacturing Corporation in Fannin County, Texas, which has improved productivity by
88.5 percent over five years, according to manufacturing vice president David Kellenberger.
General Tire's 1,950-employee plant in Mount Vernon, Illinois, where the plan has generated $30 million in
savings over a five-year period$20 million of which was paid out to workers in the form of bonuses, while
the company profited by $10 million, said Floyd Brookman, coordinator of the program
Timken's Faircrest Steel Plant, where gainsharing targeted plantwide improvements and replaced old
incentive systems that paid only for individual piece-work operations, said Tim Chapin, senior human
resources executive.