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Gainsharing and mutual monitoring: a combined agency-organizational justice interpretation

Article Abstract:

This study examines the behavioral consequences of "gainsharing" using a theoretical framework that includes elements of agency and organizational justice theory. We propose that when gainsharing is used as a collective form of incentive alignment, mutual monitoring among employees is a direct function of procedural and distributive fairness. The hypothesis was supported in a quasi-experimental field study of 221 employees working for two firms. The implications of the study for future extensions of agency theory to intraorganizational phenomena are discussed. (Reprinted by permission of the publisher.)

Author: Welbourne, Theresa M., Gomez-Mejia, Luis R., Balkin, David B.
Publisher: Academy of Management
Publication Name: Academy of Management Journal
Subject: Business, general
ISSN: 0001-4273
Year: 1995
Research, Incentives (Business), Peer review, Gain sharing

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Ramping up the organizational learning curve: Assessing the impact of deliberate learning on organizational performance under gainsharing

Article Abstract:

A study examined how suggestion-based employee knowledge generated through a gainsharing productivity improvement program affects organizational performance. It is proposed that in addition to an organizational learning curve based on production experience, there is also a learning curve for cost reduction ideas implemented under gainsharing, and results reveal that the cumulative number of implemented employee suggestions significantly contributes to lower production costs.

Author: Arthur, Jeffrey B., Huntley, Christopher L.
Publisher: Academy of Management
Publication Name: Academy of Management Journal
Subject: Business, general
ISSN: 0001-4273
Year: 2005
Analysis, Influence, Organizational effectiveness, Organizational learning, Employee empowerment

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