Evart's advice for companies implementing gainsharing programs

Article Abstract:

Management and non-management employees at Evart Products Co were interviewed to collect information on appropriate steps that should be taken when implementing gainsharing programs. Respondents unanimously cited the significance of obtaining the commitment of top management. Management can show their commitment by allotting employees to engage in gainsharing activities, by providing the facilities and staff needed and by communicating information on the company's performance. Also, the management group must take a long-term perspective, keeping in mind that short-term costs will be incurred before gaining long-term benefits. Other measures to be taken include establishing a clear objective, learning the processes of gainsharing through reading materials and conferences, providing education and training for employees and special training for managers and supervisors, enhancing the plan and following-up on suggestions.

Methods

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Gainsharing drives quality improvement

Article Abstract:

Quest Plan, the gainsharing program of Evart, MI-based Evart Products Co, has dramatically improved the quality of the company's products. Defect rate of Evart's outputs, supplied to automotive assembly plants, has dipped to .04% in 1991, signifying four defective products out of 10,000 shipped. The gainsharing program was developed in response to the company's standing as one of the worst automotive-part suppliers when defective rate was 4.37%. Quest Plan was created by a task force that includes company and plant managers and approved by employees. It involves motivation of employees through a bonus calculation that rewards them regular bonuses for improved company performance and their empowerment through a structured employee suggestion system. The plan has since improved product quality, cost savings, sales and employment, employee involvement, self-management, communications and employee relations.

Motor vehicle parts and accessories, Plastics products, not elsewhere classified, Motor vehicle supplies and new parts, Evaluation, Automobile equipment and supplies industry, Automotive parts industry, Evart Products Co.

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Communication: the multiple benefits of gainsharing

Article Abstract:

Gainsharing is a management system designed to improve employee productivity by offering employees an opportunity to participate in work decisions (participative management) and to share financially in the company's profits. Gainsharing plans differ from company to company, and the number of companies participating in such plans is increasing. According to a recent survey by the BG Productivity and Gainsharing Institute in Bowling Green, Ohio, a useful byproduct of gainsharing is the employees' increased ability to communicate and work as a team and increased employee confidence in the company. Gainsharing improves both the downward and the upward flow of information and helps develop a team-oriented work force. Gainsharing plans are negotiated by some unionized firms in exchange for other wage concessions. To be successful, a gainsharing plan requires management's sincere commitment.

Research, Innovations, Employee motivation, Participatory management, Employee morale, Incentives (Business), Profit sharing, BG Productivity and Gainsharing Institute

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