Case Study - Gain Sharing at Circle Works

Shelia, gain sharing at Circle Works could be an effective process because “gainsharing is best described as a system of management in which an organization seeks higher levels of performance through the involvement and participation of its people. As performance improves, employees share financially in the gain. It is a team approach; generally all the employees at a site or operation are included” (Masternak, n.d.). Per my understanding, your company management does not want to participate in this. When you go in and discuss this with your company President you need to present the advantages and disadvantages of this plan to him. Let him review the advantages and disadvantages and let him give you some feedback on how he would like to proceed. Even if your President does not like some of the components in setting up a gain sharing program, it is possible to develop a plan that will best suit your company based of the three known models of the Scanlon, Rucker and Improshare plans.

Let us take a look at the advantages of incorporating a successful gainsharing plan for Circle Works. First, “a group incentive system that provides participating employees with an incentive payment based on improved company performance for increased productivity, increased customer satisfaction, lower costs or better safety records” (Masternak, n.d.). Other advantages of the plan include companies have higher improvements in performance. Who would not want more productive employees? Using this plan will “promote morale, pride, and more positive attitudes toward the organization” (Masternak, n.d.), it “enhances the level of involvement, teamwork and cooperation” (Masternak, n.d.) as well. It puts employees focus on their job and they can look for ways for cost-reduction savings for the company. I understand the President of the company has