Contextual analysis of performance impacts of outcome-based incentive compensation

Article Abstract:

This study investigated how contingency factors such as competitive intensity, customer profile, and behavior-based control influenced the effectiveness of an outcome-based incentive plan supporting a customer-focused service strategy. Empirical analyses were based on data for 77 months from 34 outlets of a major retailer, 15 of which implemented the incentive plan. Results support theoretical predictions: the positive impact of outcome-based incentives on sales, customer satisfaction, and profit increased with intensity of competition and proportion of upscale customers and decreased with level of supervisory monitoring. (Reprinted by permission of the publisher.)

Compensation management, Customer service, Incentives (Business)

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Impact of work teams on manufacturing performance: a longitudinal field study

Article Abstract:

We report the results of a longitudinal study examining the impact of work teams on manufacturing performance. An electromechanical assembly plant was our research site from April 1992 through December 1993; work teams were formed on its four production lines in August 1992. Our results show that both quality and labor productivity improved over time after the formation of the teams. We offer qualitative insights into the functioning of these teams and their evolution over time, leading to workplace transformation. (Reprinted by permission of the publisher.)

Other Electrical Equipment and Component Manufacturing, Electronic Components and Accessories, Electromechanical Components, Manufacturing industry, Manufacturing industries, Human resource management, Organizational effectiveness, Electromechanical devices

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Applying process knowledge for yield variation reduction: a longitudinal field study

Article Abstract:

A longitudinal field study, which will analyze the application of process knowledge by production work teams that can reduce the yield variation, is examined. Therefore for this purpose, an operationalizion of strategy is provided for identifying the sequence of particular types of actions, actions to control the mean, followed by actions to control the variance. The results are analyzed.

United States, Science & research, Process management (Computers), Process management (Business automation)

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