Managing Distribution Quality Through an Adapted Incentive Program with Tiered Goals and Feedback

Abstract

The purpose of this study was to evaluate a program designed to improve the work quality of employees at a food distribution warehouse. Participants (n = 23) were responsible for selecting food items to be distributed to restaurants. Selector errors were targeted using an adapted incentive program featuring tiered goals and individualized normative feedback. A pre-existing incentive program, wherein selectors forfeited money for each error, was adapted to allow the selectors the opportunity to earn back their disincentive money upon attainment of weekly goals that were increasingly demanding. The initial goal for the first two weeks was set at 2.0 errors per 1000 cases and every two weeks thereafter the new goal was reduced by 0.1 errors per 1000 cases until the final goal of 1.5 errors per 1000 cases. Weekly graphic feedback included public posting of individual errors rates. The mean errors per 1000 cases for the experimental group decreased 10% from 3.16 during baseline to 2.54 during the intervention. The largest decreases in errors was observed in the mid-level performers (with baseline error rates between 2 and 3.5 errors per 1000 cases). A cost-benefit analysis revealed potential savings of $9,799.50.

Evaluating Preference for Graphic Feedback on Correct Versus Incorrect Performance

“…However, Daniels and Daniels provided no data or citations for their endorsements of positively stated pinpoints. In the OBM literature, feedback delivered on the number and percentage both of incorrect responses (e.g., Bateman & Ludwig, 2003;Berglund & Ludwig, 2009;Sasson, Alvero, & Austin, 2006) and of correct responses (e.g., Rose & Ludwig, 2009;Tittelbach, Fields, & Alvero, 2008) has been found to be effective, but no studies have focused on participant preference for either feedback type.…”

The Impact of Wireless Technology on Order Selection Audits at an Auto Parts Distribution Center

“…One area of research worth pursuing within the context of order selection audits is to implement an incentive program, similar to Bateman and Ludwig (2003), where order selectors are rewarded for making fewer selection errors, as opposed to disciplining associates for making errors. The tools for such an intervention are already in place; each audit report produced by devices in the current study shows the error percent of the order selector that selected the order.…”

Business Activity Monitoring: Real-Time Group Goals and Feedback Using an Overhead Scoreboard in a Distribution Center

“…Computers generally remained in the front office where daily or weekly reports could be compiled from the tally sheets. While feedback to workers was reliable, it was nevertheless delayed due to technological limitations (Bateman & Ludwig, 2003;Berglund & Ludwig, 2009). When companies began putting computers on the shop floor (e.g., the shipping office) employees could receive feedback on their performance during their work shift much more proximal to their behaviors.…”