Gain management makes productivity soar at GST steel
| Autor: | Steven J. Berman |
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| Rok vydání: | 1994 |
| Předmět: | |
| Zdroj: | National Productivity Review. 13:503-515 |
| ISSN: | 1520-6734 0277-8556 |
| DOI: | 10.1002/npr.4040130405 |
| Popis: | GST Steel in Kansas City, Missouri, achieved striking improvements in productivity through a self-funded gain-sharing program featuring direct line-of-sight, measurable data, and low administrative support. Gain-sharing payouts averaging 12.4 percent of gross pay in 1993 were surpassed by first quarter 1994 results. Within the first three months of 1994, two components of the company broke 13 production records. In another GST component, management hit its stretch payout of 24 percent while the union reached its stretch payout of 20 percent. On a more intangible level, the program has produced gains in workforce creativity, cost consciousness, commitment, and empowerment. At the same time, the role of management has been revamped to emphasise monitoring, tracking, coaching, and ongoing communication of results. GSTs success is rooted in a disciplined six-step process of planning, environmental assessment, plan design, plan testing, plan communication, and plan monitoring. Organizations can achieve similar results if they provide all employees with equal opportunities for success, give equal weight to financial and operational measures, link business strategy with results, and tie the compensation plan to performance measures. This article outlines the function and scope of gain management and chronicles the transformation of GST as it gave birth to its own gain-management program. |
| Databáze: | OpenAIRE |
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