Technical Report
 

Gainsharing plans for mill operations in the forest products industry

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https://ir.library.oregonstate.edu/concern/technical_reports/tq57nw878

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  • During the last five years, interest in productivity-based group incentive plans for mill operations in the forest products industry has increased. In a 1983 mono­graph in this series titled "Company /Employee Gainsharing Programs," Michael B. McKay anticipated this trend. In that monograph, he defined "gainsharing" as a "group incentive plan." Based primarily on experience in other industries, McKay's monograph also showed how gainsharing bonuses might be calculated and listed key factors affecting success. Since that time, many forest products companies have adopted gainsharing plans for mill operations; many of these plans differ significantly from those described in the academic and professional literature. This monograph summarizes current experience with gainsharing plans devel­oped for forest products mill workers. The monograph first reviews various types of incentive plans, and then gives results of a survey of current gainshar­ing plans used by mill operators in the forest products industry. The monograph concludes by identifying the factors which have proved important for mill opera­tions. Among the survey's most important findings was that a great deal of thought must go into selecting criteria for productivity-based incentive plans.
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