This research shows how a state-of-the-art, plant and firm level,
productivity measurement model, the Total Factor Productivity Measurement
Model (TFPMM) can be used to drive an organization's gainsharing effort. The
TFPMM uses accounting data from actual operations to isolate the dollar effects
on profits due to changes in productivity and price recovery. Two case study
examples are used. The first case study involves a manufacturing firm and
evaluates how the TFPMM can be used in that organization for gainsharing.
The second case study involves a service firm and describes how that
organization plans to use the TFPMM to drive its gainsharing effort.
This research also examines the role of gainsharing in the performance
management process and in performance management efforts. The critical
interrelationships between gainsharing and other components of an
organization's management system and compensation system are explored.
Various gainsharing approaches are reviewed and presented with an
emphasis placed on design variables associated with a gainsharing effort. A
methodology for TFPMM implementation and for gainsharing system design,
development and implementation is presented and described. The research
balances rigor with relevance to assist managers and practitioners with the
design and development of measurement and reward systems.
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