Changing Conceptions of Employee Compensation

Abstract

This paper reviews and discusses many differing forms of incentive compensation systems that are being used in today's organizations. The review traces the roots of bonus compensation from individual piece-work plans through the adoption of organization-wide gainsharing plans to the growing recognition of open-book management. Reasons for the shift in units of analysis from the individual employee to the work team or organization as a whole are discussed. Explanations are also given for why many companies are beginning to concentrate on outcomes rather than process measures as indicators of organizational success. Lastly, suggestions for enhancing the research agenda and bridging Mark R. Dixon is affiliated with Southern Illinois University. Linda J. Hayes is affiliated with the University of Nevada. Jack Stack is President, Springfield Remanufacturing Group.

Information Sharing and Incentives in Organizations

“…Proof: (i) Recall that^ denotes the worker's belief about the manager's strategy . As can be readily veri…ed from (11), e N (^ ) strictly increases in^ , with e N (0) > 0 and e N (1) < 1. On the other hand, e S (t) is independent of^ but strictly decreases in t, with e S (t) !…”

“…Note from (11) that e N is strictly increasing in^ . If the worker's belief that an informed manager will divulge her information increases, then the probability that the manager is informed given that she did not divulge her information must go down.…”

Information Sharing and Incentives in Organizations

“…As can be readily veri…ed from (11), e N (^ ) strictly increases in^ , with e N (0) > 0 and e N (1) < 1. On the other hand, e S (t) is independent of^ but strictly decreases in t, with e S (t) !…”

“…On the other hand, given that^ = when^ = 0, e N (^ = 0) decreases in , as can be seen from (11). Thus, an increase in implies that e S (t 2 ) > e N (^ = 0) at the initial level of t 2 , which in turn implies an increase in t 2 , because e N does not depend on t and e S decreases in t.…”

Enhancing staff performance measures in an acquired brain injury setting: combating the habituation to organizational behavioral interventions

“…There have been many uses of performance feedback within and beyond human service settings (see, e.g., Austin, Lutrey, & Rohn, in press;Reid & Parsons, 1995). At times, performance feedback has also been used in conjunction with other behavior analytic intervention procedures such as monetary reinforcement programs (see Dixon, Hayes, and Stack, 2003, for a review), instructional control programs (Runnion, Watson, & McWhorter, 1978), aversive contingencies such as threatening job loss (Repp & Deitz, 1979), and in-service training programs aimed at identifying key job duties (Clark, 2001). However, documentation of any form of performance feedback with an organization serving persons with brain injury is lacking in the published literature.…”