Cultural Guidelines of Sri Lanka
What is Gainsharing ?
By Angela Bowey http://www.gainshare.co.nz Background:
Gainsharing is a form of remuneration, but it is different from most other forms. The traditional model of wage or salary negotiation has employers seeking a 'good deal' in terms of performance and effort for the money they pay their employees; and employees seeking the best pay they can obtain for their work. This model is particularly evident in systems such as piecework, where the bargaining between adversaries is institutionalised into the rate-fixing procedures.
Gainsharing is based on quite a different philosophy. Like other incentive systems, it usually relates only to the incentive component of remuneration, not the whole package. But the principles underlying gainsharing differ fundamentally from systems where employer and employee are at odds in fixing a bargain, where the advantage to one is almost inevitably to the disadvantage of the other.
Philosophy:
the philosophy behind Gainsharing is basically that of making 'work' into a 'win-win' situation, where employees and the organisation* benefit directly from success of the operation . Direct financial benefits to both the employees and the organisation ensure that a good Gainsharing system produces a real win-win situation. This differentiates Gainsharing from other "motivational" programmes such as Total Quality Management (TQM), Self-directed Work Teams, Quality Circles, Job Enrichment, etc., where there is no link to remuneration and no financial benefit to the employees.
Process: A good Gainsharing system consists of a PROCESS of activity where: groups of employees and their managers meet regularly to review performance and plan how to improve it; this leads to improved company performance; when measurable improvements are achieved and maintained there are regular payments to employees; these payments are paid for out of the value to the company of the performance improvements that are achieved; in this way
By Angela Bowey http://www.gainshare.co.nz Background:
Gainsharing is a form of remuneration, but it is different from most other forms. The traditional model of wage or salary negotiation has employers seeking a 'good deal' in terms of performance and effort for the money they pay their employees; and employees seeking the best pay they can obtain for their work. This model is particularly evident in systems such as piecework, where the bargaining between adversaries is institutionalised into the rate-fixing procedures.
Gainsharing is based on quite a different philosophy. Like other incentive systems, it usually relates only to the incentive component of remuneration, not the whole package. But the principles underlying gainsharing differ fundamentally from systems where employer and employee are at odds in fixing a bargain, where the advantage to one is almost inevitably to the disadvantage of the other.
Philosophy:
the philosophy behind Gainsharing is basically that of making 'work' into a 'win-win' situation, where employees and the organisation* benefit directly from success of the operation . Direct financial benefits to both the employees and the organisation ensure that a good Gainsharing system produces a real win-win situation. This differentiates Gainsharing from other "motivational" programmes such as Total Quality Management (TQM), Self-directed Work Teams, Quality Circles, Job Enrichment, etc., where there is no link to remuneration and no financial benefit to the employees.
Process: A good Gainsharing system consists of a PROCESS of activity where: groups of employees and their managers meet regularly to review performance and plan how to improve it; this leads to improved company performance; when measurable improvements are achieved and maintained there are regular payments to employees; these payments are paid for out of the value to the company of the performance improvements that are achieved; in this way