Teams, Incentive Pay, and Productive Efficiency: Evidence from a Food-Processing Plant

Derek Jones, Panu Kalmi and Antti Kauhanen ()

ILR Review, 2010, vol. 63, issue 4, 606-626

Abstract: By using weekly records on efficiency for four production lines in a Finnish food-processing plant during the period 1999–2005, the authors investigate the effects on production line performance once changes in Human Resource Management (HRM) practices were instituted. Using time-series methods to estimate structural change models, the authors were able to determine the extent to which specific HR policies—the introduction of teams, company-wide profit-sharing, and a group system of performance-related pay (PRP)—affected workers' efficiency, even though production technology remained the same. As predicted, the authors found that in three of the four production lines, when PRP was added to teams, productivity increased from between 9 and 20%, highlighting the importance of the complementarity between employee participation and incentive pay.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/001979391006300403 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ilrrev:v:63:y:2010:i:4:p:606-626

DOI: 10.1177/001979391006300403

Access Statistics for this article

More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().