Gainsharing companies believe it is fair to share.
A bonus system is established to reward for improved performance which provides a
common focus, "a score ." Everyone in the organization makes a contribution to the
institutionís success. Why only limit bonuses to the select few?
People typically take pride in their work and have a strong desire for respect
in what they do. Sharing says to the workforce, "We all contribute.
That contribution is respected. Letís financially share the benefits."
The principle of identity speaks to the sense of purpose,
belonging, accountability, and ownership. When performance is measured, communicated,
and gains financially shared, the workforce develops an appreciation and understanding
of the organizationís needs and goals. The level of awareness is heightened as
information is shared. Many questions are asked about the operation's performance,
customers, and the overall business climate. Employees develop a better understanding
and appreciation for the business. As understanding grows, there is recognition for the
need for change. Change leads to improvement, and improvement leads to gains.
An attitude of "we" rather than "them" is developed. Identity is a key to
advancing employee involvement.
Gainsharing cannot be successful without involvement.
As identity and the sense of ownership are developed, employees will naturally
have ideas on ways to improve performance. Many managers have learned that the
people performing the work often have the solutions that best solve the problem.
This is true, because the worker is involved and more committed to implementing
the solution. People support what they create. In a Gainsharing environment,
employees participate in the process of generating suggestions, making decisions,
and implementing improvements. The system gives people the opportunity to have their
ideas heard, in other words, a system for ďlistening.Ē As a result, communications,
cooperation, and teamwork improve.
Undoubtedly, the most important single principle for a
Gainsharing plan's success is the organizationís commitment, particularly management
commitment. A strong management belief in people and their value is required.
The organization must have a capable management team with a dedication to continuous
improvement and the recognition for the need for change. Ongoing communication,
training, and education must be a long term focus. Commitment is the key to the total
process. No management initiative can be accomplished without it.