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 Performance Improvement through Partnership and Commitment
 







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Gainsharing  A Team Based Approach to Driving Organizational Change

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




Gainsharing:
Performance Improvement through Partnership and Commitment

Gainsharing: A Team Based Approach to Drive Organization Change
Gainsharing: A Team Based Approach to Drive Organization Change

By Robert Masternak


Masternak & Associates
Liberty Tree Plaza
1114 North Court, Suite 195
Medina, Ohio 44256
Phone: (330) 725-8970
robert@masternak.com


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