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Comparison of Gainsharing Plans

The document compares three gainsharing plans: the Scanlon plan, the Rucker plan, and ImproShare. The Scanlon plan, developed by Joe Scanlon in the 1930s, emphasizes employee participation and teamwork to enhance productivity and quality through a structured suggestion system. The Rucker plan is noted for its balance between humanistic and economically driven approaches to employee incentives.

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Hendro Supra Yogi
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4 views1 page

Comparison of Gainsharing Plans

The document compares three gainsharing plans: the Scanlon plan, the Rucker plan, and ImproShare. The Scanlon plan, developed by Joe Scanlon in the 1930s, emphasizes employee participation and teamwork to enhance productivity and quality through a structured suggestion system. The Rucker plan is noted for its balance between humanistic and economically driven approaches to employee incentives.

Uploaded by

Hendro Supra Yogi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Three other gainsharing plans, the Scanlon plan, the Rucker plan, and
ImproShare, are compared on 11 dimensions in Exhibit 114. Each of these plans
will be discussed briefly. .
Scanlon Plan: The Scanlon plan is a combination suggestion, group incentive,
and employee participation scheme that has been adopted by many small and
medium-sized manufacturing firms. In the late 1930s, Joe Scanlon, an
unemployed steelworker, created a system of labormanagement relations that
has now been adopted by over 2,000 companies of all sizes, union and nonunion,
in many industries. To involve all employees in the problem-solving process
and to improve overall productivity, Scanlon organized employees into
productivity teams responsible for exploring any idea that would improve
quality and output, eliminate waste, and save time. Scanlon realized that both
white- and blue- collar employees must cooperate to make productivity
improvements, so the next step in the Scanlon plan is to organize a steering
committee to (1) evaluate suggestions, (2) get budget approval,(3) establish
priorities, and (4) report back to the employee teams. Gainsharing was used so
that all employees would benefit financially from productivity improvements
resulting front the suggestion system. The actual gainsharing formula is
designed to suit the needs of the individual firm.
Rucker Plan: The philosophy of Rucker plans falls between the humanistic
orientation of Scanlon plans and the ideal of an economically driven and
rewarded

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