Beyond the Bottom Line: Gainsharing and Organizational Development

Examines the organizational implications of innovative reward structures, with particular reference to gainsharing. Focuses on exploring beyond the impact of compensation on productivity and profitability, which are essential considerations in designing a compensation scheme. Explores the connection between compensation and organizational development – the ways in which incentives and rewards contribute to improved utilization of human resources and capabilities within organizations. Assesses the relationship between gainsharing and organizational development, with particular attention to features such as work design, employment relationships, structure, culture and workplace attitudes and behaviour. Rounds off the discussion with a look at several examples of firms which have introduced innovative compensation schemes, to determine what lessons can be drawn from their experiences. Concludes with an assessment of the strategic calculations that should inform decisions about introducing innovative compensation schemes, especially gainsharing.