THE DECISION TO IMPLEMENT GAINSHARING: THE ROLE OF WORK CLIMATE, EXPECTED OUTCOMES, AND UNION STATUS

This study empirically examines several factors that may predict management decisions to implement high-involvement gainsharing plans, interventions that pay company-wide bonuses for performance improvements and encourage employee involvement in work decisions. It addresses the question: why does one facility that considers implementing a gainsharing plan decide to do so, while another facility does not? In 59 facilities (32 nonunion and 27 union) considering the implementation of a gainsharing plan, 485 upper-level managers evaluated the work climate in their facilities (participation, identity, cooperation, and expected plan support) and rated the anticipated outcomes of the intervention. Union status had no direct relationship with the implementation decision. A significant interaction showed that implementation was positively related to participation and expected outcomes in the nonunion facilities, but was unrelated to these variables in the unionized facilities. The results provided little support for a “transformation” model of plan implementation and moderate support for a "compatibility" model.