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- Title
THE ANATOMY OF A FAILURE: A NON-RECOMMENDED APPLICATION OF GAINSHARING AND ITS PREDICTABLE EFFECTS ON PRODUCTIVITY IN A PUBLIC SECTOR SETTING.
- Authors
Miller, Christopher S.; Schuster, Michael H.
- Abstract
This article analyzes the effects of gain sharing on productivity in the public sector. Productivity-sharing plans have been a part of the U.S. industrial relations scene for more than forty years. Productivity-sharing plans, more recently called Gainsharing plans, are organizational systems for sharing the benefits of improved productivity, cost reductions or quality in the form of regular cash bonuses. The basic principle upon which Gainsharing is based is that employees are compensated for increased productivity above an acceptable productivity level, at a predetermined participation ratio, in proportion to the increase in productivity or in accordance with an established plan. While the private sector has responded to its own competitive pressures, the has been forced to face an increasingly difficult financial situation marked by a demand for more services and higher wages, rising deficits and suppressed levels of taxation and available revenues. As a result, public sector managers have also turned to productivity improvement programs such as Gainsharing and employee involvement in an effort to accommodate the conflicting demands they face. Although private sector Gainsharing has been the subject of extensive study, the quantity and quality of research on public sector Gainsharing reflects its limited use in government settings.
- Subjects
GAIN sharing; PUBLIC sector; LABOR incentives; WAGES &; labor productivity; PRODUCTIVITY incentives
- Publication
Public Administration Quarterly, 1995, Vol 19, Issue 2, p217
- ISSN
0734-9149
- Publication type
Article