2 conditions that should be in place for gainsharing

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2. Conditions that should be in place for gainsharing to be effective include: a. management commitment b. the need to change or a strong commitment to continuous improvement c. management's acceptance and encouragement of employee input d. high levels of cooperation and interaction e. employment security f. information sharing on productivity and costs g. goal setting
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h. commitment of all involved parties to the process of change and improvement i. agreement on a performance standard and calculation that is understandable, seen as fair, and closely related to managerial objectives. 3. Group incentives and team awards typically pertain to a smaller work group. Group incentives tend to measure performance in terms of physical output, whereas team award plans may use a broader range of performance measures (e.g., cost savings, successful completion of product design, or meeting deadlines). Drawbacks are that individual competition may be replaced by competition between teams. In addition, dimensions must be perceived as fair by employees, and these standards must not exclude important dimensions such as quality
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