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Variable pay and job performance of shop-floor workers in lean production

Author

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  • Vathsala Wickramasinghe

    (University of Moratuwa)

  • G.L.D. Wickramasinghe

    (University of Moratuwa)

Abstract

Purpose- The study investigated design features of variable pay plans adopted for shop-floor workers engaged in manufacturing firms that had implemented lean production systems, and the effects of design features on their job performance. Design/methodology/approach- 892 shop-floor workers attached to lean implemented manufacturing firms in Sri Lanka responded for the study. Structural equation modelling was used for the data analysis. Findings- It was found that the performance evaluation-base for variable payments, variable pay calculation-base and goal setting for variable pay significantly predict job performance of the shop-floor workers. Originality/value- It could be expected that the academics and practitioners alike are motivated by their desire to clearly apprehend the contribution of variable pay plans on job performance of the shop-floor workers engaged in lean production systems. This demands more investigations to better understand the design features of variable pay plans.

Suggested Citation

  • Vathsala Wickramasinghe & G.L.D. Wickramasinghe, 2016. "Variable pay and job performance of shop-floor workers in lean production," Post-Print hal-05588646, HAL.
    • Handle: RePEc:hal:journl:hal-05588646
    DOI: 10.1108/jmtm-12-2014-0130
    Note: View the original document on HAL open archive server: https://hal.science/hal-05588646v1
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