Factors Influencing Organizational Performance in Gainsharing Programs

Kim, Dong-One

doi:10.1111/j.1468-232x.1996.tb00404.x

Cited by 29 publications

(41 citation statements)

References 25 publications

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“…Sociology-based research, for example, finds that more powerful executives tend to have more favorable compensation contracts than less powerful executives (e.g., Tosi and Gomez-Mejia 1989;Wade, O' Reilly, and Chandratat 1990). Similarly, empirical studies indicate that unions can affect the design of incentive plans and the per-formance gains from their implementation (e.g., Schwarz 1989;Kim 1996). The participation of these groups in incentive plan design is therefore expected to influence the performance measures included in the plan, independent of the measures' ability to motivate workers (Waggoner et al 1999).…”

Section: Stakeholder Interestsmentioning

confidence: 99%

Determinants Of Performance Measure Choices In Worker Incentive Plans

Ittner

Larcker

2001

SSRN Journal

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This study examines the determinants of performance measure choices in worker incentive plans. The results indicate that inform-ativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices. Disciplines AccountingThis journal article is available at ScholarlyCommons: http://repository.upenn.edu/accounting_papers/79 S58 [ Journal of Labor Economics, 2002, vol. 20 David F. Larcker, University of PennsylvaniaThis study examines the determinants of performance measure choices in worker incentive plans. The results indicate that informativeness issues such as those addressed in economic theories have a significant effect on measurement choices. However, other reasons for adopting the plans, such as upgrading the workforce and linking bonuses to the firm's ability to pay, also influence measurement choices, as do union representation and management participation in plan design. Moreover, the factors influencing the use of specific measures vary, suggesting that the aggregate performance measure classifications commonly used in compensation research provide somewhat misleading inferences regarding performance measurement choices.

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Section: Stakeholder Interestsmentioning

confidence: 99%

Determinants Of Performance Measure Choices In Worker Incentive Plans

Ittner

Larcker

2001

SSRN Journal

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“…Income tax is withheld at source on receipt of the amounts awarded under Profits and Earnings-Sharing Schemes, separate from other income received during the month (Della Rosa (2000); Garrido (1999)). (Hatcher & Ross (1991); Kaufman (1992); Schuster (1983);Voos (1987)) and the factors infl.uencing these results (Bullock & Tubbs (1990);Cooper , Dyck & Frohlich (1992); Gowen & J ennings (1991); Kim (1996); Kim & Voos (1997); Rosenberg & Rosenstein (1980) ; White (1979 ) According to a t heoretical review of these articles, taking an article by Kim (1996) as the basic reference, t he independent variables explaining upgrades in op erating performance are the following:…”

Section: Profits or Earnings-sharing In Brazilmentioning

confidence: 99%

Factors That Influence Operating Performance Through the Use of Earnings or Gainsharing Plans: Evidence in Brazil's Chemical Industry

Basso

Teixeira

Martin

2005

REMEF

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The purpose of this Paper is to study: 1) Employee incentive programs, more specifically Gainsharing schemes in the Brazilian chemical industry; 2) Factors with positive effects upgrading the operating performance of the organizations that adopt them. The operating performance includes the following dependent variables: better quality; higher productivity; lower production costs; streamlined production process; and higher average bonus rates paid to the employees. The independent variables analyzed in this study were: employee involvement; method of measuring productivity; consultant involvement; bonus payments; employee votes; financia! situation in the company; trade union support and involvement. The findings of an analysis of the data covering llO companies through the Probit multivariate analysis proves the hypothesis that incentive programs have positive effects on managerial perceptions of the improvement in corporate operating performances. ResumenEste trabajo tuvo el propósito de estudiar: 1) los programas de incentivos ofrecidos a los empleados, la Participación en las Ganancias o Resultados y la Participación en los Resultados en las industrias químicas brasileñas 2) Los factores que influencian positivamente la mejora del desempeño operativo de las organizaciones que los adoptan. El desempeño operativo contempla las siguientes variables dependientes: mejora d e la calidad, mejora de la productividad, reducción de los costos de producción, mejora del proceso productivo e índice promedio de pago de bonos a los empleados. Las variables independientes consideradas en este estudio fueron: involucración del empleado, método de medición de la productividad, * Pós-Gradua<;ao em Administrac;ao, Mackenzie Presbyterian University. Ruada Consola<; iio, 930. 7 andar. Sala 76. Consola<;iio. Sao Paulo-SP. CEP 01302-907. Telephone : (55)(1l) 3236-8597.

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“…First, participation in pay systems had four items that were adapted from pay administration literature (Greenberg, 1996(Greenberg, , 2003Milkovich & Newman, 2009;Money & Graham, 1999;Pettijohn, et al, 2001). Second, adequacy of pay had four items that were adapted from pay design literature (Milkovich & Newman, 2009;Kim, 1996Kim, & 1999Gomez-Mejia & Balkin, 1992a& 1992b. Third, interactional justice had four items that were adapted from organizational justice literature (Cohen-Charash & Spector, 2001;Cropanzano et al, 2001;Folger et al, 1992;Greenberg, 1996Greenberg, , 2003Skarlicki & Folger, 1997).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…According to a high performing human resource practice, participation in pay systems is often seen as an employer who encourages employees in different hierarchical levels and categories to discuss and share information-processing, decision-making, and/or problem-solving activities related to pay systems (Belcher & Atchison, 1987;Ismail et al, 2007). Most organizations practice two major participation styles: participation in pay design (e.g., start-up stages of pay system) and participation in pay administration (e.g., operation stages of pay system) (Belfield & Marsden, 2003;Kim, 1996Kim, & 1999Lee et al, 1999). Participation in the design of pay systems refers to employees who are given more opportunity to provide ideas in establishing pay systems to achieve the major goals of its system, stakeholders needs and/or organizational strategy (Gomez-Mejia & Balkin, 1992a& 1992bLawler et al, 1993).…”

mentioning

confidence: 99%

“…Participation in input means employees provide suggestions to determine the enterprise's goals, resources, and methods. Participation in output means employees are permitted to share the organization's rewards in profitability and/or the achievement of productivity objectives (Coyle-Shapiro et al, 2002;Kim, 1996Kim, & 1999. For example, a pro-social organisational behavior literature highlights that making constructive suggestions in performance based pay system (e.g., merit pay and gain-sharing plans) will encourage employees to be honest in making personal contributions, this may lead to improved job satisfaction (Giacobbe-Miller et al, 1998;Mani, 2002).…”

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confidence: 99%

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Relationship between Performance Based Pay, Interactional Justice and Job Satisfaction: A Mediating Model Approach

Ismail¹,

Mohamed²,

Hamid³

et al. 2011

IJBM

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This study was conducted to examine the influence of interactional justice in the relationship between performance based pay and job satisfaction using 334 usable questionnaires gathered from employees who work in Malaysian private institutions of higher learning (PRIVATE INSTITUTION), Malaysia. Exploratory factor analysis confirmed that the measurement scales used in this study met the acceptable standards of validity and reliability analyses. Further, the outcomes of Stepwise Regression analysis showed two important findings: First, performance based pay (i.e., participation in pay systems and adequacy of pay) significantly correlated with job satisfaction. Second, linking performance based pay (i.e., participation in pay systems and adequacy of pay) to interactional justice significantly correlated with job satisfaction. Statistically, this result demonstrates that interactional justice does act as a partial mediating variable in the relationship between performances based pays and job satisfaction in the studied organizations. In addition, discussion, implications and conclusion are elaborated.

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Factors Influencing Organizational Performance in Gainsharing Programs

Cited by 29 publications

References 25 publications

Determinants Of Performance Measure Choices In Worker Incentive Plans

Determinants Of Performance Measure Choices In Worker Incentive Plans

Factors That Influence Operating Performance Through the Use of Earnings or Gainsharing Plans: Evidence in Brazil's Chemical Industry

Relationship between Performance Based Pay, Interactional Justice and Job Satisfaction: A Mediating Model Approach

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