Gainsharing — A Team Based Approach to Driving Organizational Change
Published by WorldatWork.

Introduction

Chapter 1 — Gainsharing Philosophy: A System of Management or a Compensation Plan?

Chapter 2 — The Gainsharing Foundation: Four Key Principles

Figure 1: Four Key, Interrelated Principles of Gainsharing

• Equity
• Identity
• Involvement/Participation
• Figure 2: Comparison of Pre- and Post-Gainsharing Survey
• Figure 3: Comparison of Pre- and Post-Gainsharing Survey
• Commitment
• Figure 4: Comparison of Pre- and Post-Gainsharing Survey

Chapter 3 — The Calculation Philosophy:

• Control or Common-Fate Orientation
• Figure 5: Gainsharing Plan Purpose Statements
• Physical vs. Financial Measures
• Figure 6: The Dichotomy Between Physical and Financial Measures
• Figure 7: Common-Fate Orientation
• Figure 8A: Bonus Calculations As Related to Physical Measure and Minor Level of Employee Involvement
• Figure 8B: Bonus Calculations As Related to Physical Measure and Moderate Level of Employee Involvement
• Figure 8C: Bonus Calculations As Related to Financial Measure and High Level of Employee Involvement
• Figure 8D: Bonus Calculations As Related to Financial Measure and Minor Level of Employee Involvement
• Employee Involvement — Minor vs. Major
• Operating Performance vs. Profits
• Figure 9: Operating Performance & Profits Matrix

Chapter 4 — The Distribution Group: Boundaries

• Figure 10: Line of Sight for a Worker on Piecework
• Gainsharing Implementation Case Study
• Figure 11: Distribution Alternatives
• Broad Measurement — Common Distribution Group
• Figure 12, Model 1: Broad Measure, Common Group
• Figure 13: Line of Sight for Broad Measure, Common Group
• Narrow Measures, Common Group
• Figure 14, Model 2: Narrow Measures, Common Group
• Figure 15: Line of Sight for Narrow Measures, Common Group
• Narrow Measures, Independent Group
• Figure 16, Model 3: Narrow Measures, Independent Group
• Figure 17: Line of Sight for Narrow Measures, Independent Group
• Narrow Measures, Blended Group
• Figure 18, Model 4: Narrow Measures, Blended Group
• Figure 19: Line of Sight for Narrow Measures, Blended Group
• Factors to Consider — Defining the Group
• Interdependence
• Administration
• Influence
• Identity
• Inequities

Chapter 5 — Measurement

• Figure 20: Multicost Single Ratio
• Figure 21: Family of Measures Model
• Figure 22: Pool Accumulation
• Advantages of the Family of Measures Approach
• Figure 23: Family of Measures Example
• Measurement Criteria
• Figure 24: Criteria Screening Tool
• Figure 25: “Trigger” or “Gate” Measure

Chapter 6 — Calculation Issues: Values, Sharing and Gatekeepers

• Valuing the Gain
• Figure 26: Multicost Gain
• Figure 27: Allowable Hours Formula
• Figure 28: Units per Payroll Hour Formula
• Figure 29: Value per Unit
• Sharing the Gains
• Appropriate Level of Award for Appropriate Level of Performance
• Figure 30: Standard Bonus Scale
• Figure 31: Comparison of Two Facilities
• Gatekeeper Measures

Chapter 7 — Baseline Consideration: Setting the Bar

• History
• Figure 32: Using Historical Data as a Baseline
• Target as the Baseline
• Figure 33: Rolling Average
• Figure 34: Variable Share Approach
• Baseline Adjustments
• Figure 35: Effects of a Fixed Baseline
• Figure 36: Fixed vs. Rachet Baseline
• Figure 37: Baseline Adjustments
• Figure 38: Baseline Adjustments with Less Aggressive Weighted Averaging Approach
• Mid-Year Baseline Adjustments

Chapter 8 — Frequency of Payout, Minimum Payout and Reserve Account Frequency

• Minimum Payout
• The Reserve Account
• Figure 39: Effect of Variability
• Figure 40: Deficit Reserve
• Figure 41: Deficit Reserve

Chapter 9 — Method of Distribution

• Equal Share
• Figure 42: Methods of Distribution
• Equal Percent
• Equal Cents per Hour
• Split Distribution
• Figure 43: Split Distribution

Chapter 10 — Other Plan Policies

• Eligibility
• Termination Policies
• Plan Year
• Communications
• Employee Involvement

Chapter 11 — The Design Team and Implementation Steps

• Why a Design Team?
• Design Team’s Role
• Who’s on the Team?
• Criteria for Choosing a Design Team Member
• Parameters for Team’s Decision-making
• Implementation Steps
• Figure 44: Plan Components
• Sidebar: A Word of Caution
• Figure 45: Typical Flow of the Implementation Process
• Step 1: Education/Orientation of Management Staff
• Readiness Assessment Checklist
• Step 2: Purpose and Goals
• Step 3: Employee Awareness
• Step 4: Model Development, Measures and Simulations
• Step 5: Design Team Formal Plan Development Phase
• Step 6: Plan Kickoff
• Step 7: Implementation/Training
• Involvement Training
• General Employee Training and Communication
• Plan Coordinator
• Step 8: Monitoring Phase
• Figure 46: Implementation Plan Timeline

Chapter 12 — The Employee Involvement System

• Involvement Teams
• The Review Board
• Figure 47: Idea Flow

Chapter 13 — End Results

• Actual Results
• Figure 48: Positive Results from Gainsharing
• Figure 49: Three-Month Rolling Average Productivity
• Figure 50: Molding Operations, First-Year Plan Results
• Figure 51: Metal Extrusion Operation, First-Year Plan Results
• Figure 52: Survey Comparison One Year After Implementation
• A Process to Develop Human Assets

Selected References