A hypothesized, general causal model of a gainsharing program

Abstract

This research study investigated how gainsharing works to affect organizational performance. Six top managers at Commonwealth Paper (a pseudonym) described how they believe their gainsharing program works to affect company operations and performance. From their verbal descriptions, a site-specific causal model was created. This site-specific model was then compared to the gainsharing literature and a general model hypothesized. Future research studies could build on the research findings to enhance the quality of the general case model. Additional site-specific models and the enhanced general model could later be translated to a mathematical simulation model to see what might happen to a gainsharing program over time.

The research findings suggest that gainsharing works to affect organizational performance by providing additional forces for performance goal achievement. Gainsharing, however, does not provide a management practice or process through which performance goals are achieved. Because gainsharing can also provide forces for setting safe performance goals, it should be implemented in a culture where a critical mass of managers and workers are both intrinsically motivated and allowed to perform well.