Bonus systems do motivate
Article Abstract:
A survey was conducted on the effective use of bonus systems in retail stores throughout the U.S. Topics examined were: the effect of the bonus on store managers' performance, perceived fairness of the bonus system, and ways to improve the bonus system. The bonus was highly valued by the managers and was generally regarded as a reflection of performance; however, the experience and skill of the manager were perceived as more important than the manager's effort. In most cases, the bonus system was perceived as being administered fairly. Most managers did not perceive a close relationship between store performance and bonus size. The most frequent suggestions for improvement of the bonus system were: limiting the bonus to factors that can be controlled by the manager and changing the factors used in determining the bonus.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Two sides of gain sharing
Article Abstract:
American companies have tried a variety of techniques such as quality circles and gain sharing in order to increase productivity, which reached a post-war low during the 1970s. Gain sharing plans originated in the 1970s and require, in most cases, a major change in management style. At Dixie Industries in Tennessee, gain sharing has been implemented successfully. The gain sharing plan used was marketed by the Eddy-Rucker-Nickels Co. of Cambridge, Massachusetts. To encourage employee acceptance of the plan, a booklet describing the plan was distributed to employees, employees submitted cost-saving ideas, and it was arranged that employees visit all local manufacturing plants to generate interest. The plan was successful because both the financial and psychological needs of the employees were met.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
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Managing for profit
Article Abstract:
Borg-Warner Chemicals has developed a Profit Center Management program to link employees' salaries to the profitability of business units. An accounting information system allows the firm to assign and report transactions and investment components of inventory and accounts receivable on the basis of profit centers. Borg-Warner uses a financial reporting system to make decisions about individual profit centers as economic units. The Profit Center Management program helped increase revenues for the Plastic Service Centers business unit by 20% in the year after its implementation in 1986. Borg-Warner exceeded both profit goals and expectations.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1991
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