Influence of Financial Incentive Programs on Employee Performance and Organizational Productivity Within the Mass Transit Industry - Executive Summary

摘要

This research report examines the influence that financial incentive programs (FIPs) have on individual employee performance and on organizational productivity. The report also focuses on the extent to which financial incentives are currently used in urban mass transit agencies and the effectiveness of such programs in the transit environment. The research findings are presented in three major sections: (1) a selective review of the social science literature regarding theoretical and practical aspects of financial incentives; (2) an overview of incentive practices in both the private and public sectors; and (3) our survey of transit agencies regarding the types and outcomes of FIPs being used. The report describes the major types of FIPs found in the literature in terms of the program objectives, the program operations, the empirical research evaluations, and the potential strengths and weaknesses. The transit survey findings are analyzed in terms of what types of FIPs are most frequently used, how long those programs have been in place, and how the programs are evaluated. Recommendations concerning the selection and use of FIPs within the transit environment are made.