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DESIGNING INCENTIVE PLANS FOR UNIONIZED EMPLOYEES: A COMPARISON OF CONTINUOUS AND VARIABLE RATIO REINFORCEMENT SCHEDULES1
Authors:GARY P LATHAM  DENNIS L DOSSETT
Abstract:The relative effectiveness of incentive plans administered on continuous and VR-4 schedules of reinforcement was investigated with unionized employees using a within subjects design. Mountain beaver trappers working side by side were randomly assigned to one of two groups. In group A the trappers received $1.00 for every rat they trapped. At the end of four weeks, they were switched to a VR-4 schedule in which they received $4.00 contingent upon trapping a rat and correctly guessing the color of one of four marbles prior to drawing it from a bag held by the supervisor. In group B the order of the schedules was reversed. The results were analyzed in terms of cost-related, behavioral, and reaction criteria. The study increased employee productivity and decreased costs for the company. Inexperienced workers had higher productivity on the continuous reinforcement than on the VR-4 schedule; experienced workers had higher productivity on the VR-4 schedule than on the continuous schedule. Both the experienced and the inexperienced employees preferred the VR-4 schedule over the continuous schedule.
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