The relationship of performance based, financial incentives to productivity and quality of work life.

摘要

A study was conducted at a Federal Agency to determine the relationship between financial incentive programs, productivity, and the quality of work life. The financial incentive program known as gainsharing was examined to determine its effect on productivity. Individual and group incentive programs were used to establish whether there was a preference. Data was collected regarding the productivity from five different operational locations. Surveys were completed before any pay for performance plans were introduced. Post assessment productivity data and quality of work life responses were compared to a base line measure. In addition, a control group was utilized throughout the study. The control group was not eligible for an incentive plan. Two groups were put on a plan based on individual productivity, one of which included a continuous improvement plan, while the other did not. The other two groups were eligible for group incentive plans. These both operated with continuous improvement programs.; The findings suggest that group incentive plans have the least adverse effect on the workers' perception of their work life, while also improving their productivity. Individual incentive plans did improve productivity, but caused more stress to the worker in terms of their self reported quality of work life. In both cases, the findings show that money was a strong motivator for improving performance and that it was the preferred reward as determined by the workers.