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The Effects of Improshare on Productivity

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  • Roger T. Kaufman

Abstract

Analyzing 112 responses to a 1988 questionnaire sent to all known users of IMPROSHARE, the author estimates the effects on productivity of this gain-sharing plan, which is being used by a growing number of companies. The data indicate that IMPROSHARE has led to significant increases in productivity. The median productivity increase was about 8% in the first year, and the cumulative productivity gains had risen to 17.5% by the third year, after which they began to level off. The mean productivity increases were even greater than the median increases and followed a similar pattern. The author finds that a sizable portion of the gains reflects reductions in defect and downtime rates, and that firm size was inversely related to productivity gains.

Suggested Citation

  • Roger T. Kaufman, 1992. "The Effects of Improshare on Productivity," ILR Review, Cornell University, ILR School, vol. 45(2), pages 311-322, January.
    • Handle: RePEc:sae:ilrrev:v:45:y:1992:i:2:p:311-322
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    Cited by:

    1. Joel Rogers, 1995. "United States: Lessons from Abroad and Home," NBER Chapters, in: Works Councils: Consultation, Representation, and Cooperation in Industrial Relations, pages 375-410, National Bureau of Economic Research, Inc.
    2. Derek C. Jones & Takao Kato & Jeffrey Pliskin, 1994. "Profit Sharing and Gainsharing: A Review of Theory, Incidence, and Effects," Economics Working Paper Archive wp_125, Levy Economics Institute.
    3. Susan Helper & Morris M. Kleiner, 2009. "International Differences in Lean Production, Productivity, and Employee Attitudes," NBER Chapters, in: International Differences in the Business Practices and Productivity of Firms, pages 231-261, National Bureau of Economic Research, Inc.
    4. Dong-One Kim, 1999. "Determinants of the Survival of Gainsharing Programs," ILR Review, Cornell University, ILR School, vol. 53(1), pages 21-42, October.
    5. Bernd J. Frick & Ute Goetzen & Robert Simmons, 2013. "The Hidden Costs of High-Performance Work Practices: Evidence from a Large German Steel Company," ILR Review, Cornell University, ILR School, vol. 66(1), pages 198-224, January.
    6. Roger T. Kaufman & Raymond Russell, 1995. "GOVERNMENT SUPPORT FOR PROFIT SHARING, GAINSHARING, ESOPs, AND TQM," Contemporary Economic Policy, Western Economic Association International, vol. 13(2), pages 38-48, April.
    7. Douglas L. Kruse, 1993. "Does Profit Sharing Affect Productivity?," NBER Working Papers 4542, National Bureau of Economic Research, Inc.
    8. Park, Rhokeun, 2012. "Cognitive and affective approaches to employee participation: Integration of the two approaches," Journal of World Business, Elsevier, vol. 47(3), pages 450-458.
    9. Leonardo Fernando Cruz Basso & Edilson Gonçalves Teixeira & Diógenes Manoel Leiva Martin, 2005. "Factors That Influence Operating Performance Through The Use Of Earnings Or Gainsharing Plans: Evidence In Brazil'S Chemical Industry," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 4(1), pages 13-100, Marzo 200.
    10. Cemal Zehir & Dogan Basar, 2016. "The Relation between Learning Orientation and Variables of Firm Performance with Strategic Human Resources Management Applications in the Islamic Banks in Turkey," International Business Research, Canadian Center of Science and Education, vol. 9(3), pages 40-52, March.
    11. Ann C. Frost, 2000. "Explaining Variation in Workplace Restructuring: The Role of Local Union Capabilities," ILR Review, Cornell University, ILR School, vol. 53(4), pages 559-578, July.

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