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Determinants of the Survival of Gainsharing Programs

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  • Dong-One Kim

Abstract

Using data from a 1992 survey of 211 organizations with gainsharing experience, the author examines determinants of the survival of gainsharing. He finds statistically significant associations between program survival and several factors, including employee approval by vote, union participation in program administration, low reliance on outside consultants, re-training, new employee training, small bonus group, labor intensity, sound corporate financial health, and major capital investment. Also positively correlated with program survival was program performance (the degree of success in achieving program goals), but that association was considerably weaker for young programs than for older ones. Variables such as re-training, new employee training, small bonus group, and good corporate financial health affected program survival via their influence on program performance.

Suggested Citation

  • Dong-One Kim, 1999. "Determinants of the Survival of Gainsharing Programs," ILR Review, Cornell University, ILR School, vol. 53(1), pages 21-42, October.
    • Handle: RePEc:sae:ilrrev:v:53:y:1999:i:1:p:21-42
    DOI: 10.1177/001979399905300102
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    References listed on IDEAS

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    Cited by:

    1. Azman ISMAIL & Mohammad Fuad ZAIDI & Aimi ANUAR, 2015. "Administrator’S Role In Performance Based Reward As A Determinant Of Employee Outcomes," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 92-110, May.
    2. 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.
    3. Andrew Pendleton & Andrew Robinson, 2010. "Employee Stock Ownership, Involvement, and Productivity: An Interaction-Based Approach," ILR Review, Cornell University, ILR School, vol. 64(1), pages 3-29, October.
    4. Colin Green & John S. Heywood, 2008. "Does Performance Pay Increase Job Satisfaction?," Economica, London School of Economics and Political Science, vol. 75(300), pages 710-728, November.
    5. Larry W. Hunter & John Paul MacDuffie & Lorna Doucet, 2002. "What Makes Teams Take? Employee Reactions to Work Reforms," ILR Review, Cornell University, ILR School, vol. 55(3), pages 448-472, April.
    6. Dong-One Kim, 2005. "The Benefits and Costs of Employee Suggestions under Gainsharing," ILR Review, Cornell University, ILR School, vol. 58(4), pages 631-652, July.
    7. Azman Ismail & Anis Anisah Abdullah, 2016. "Administration Of Reward For Individual Performance As A Predictor Of Organizational Commitments," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(2), pages 7-17, November.

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