Advanced SearchSearch Tips
Group-Performance Based Pay of Publicly Traded Companies and Its Association with Value Added Productivity per Employee
facebook(new window)  Pirnt(new window) E-mail(new window) Excel Download
 Title & Authors
Group-Performance Based Pay of Publicly Traded Companies and Its Association with Value Added Productivity per Employee
Yang, Donghoon;
  PDF(new window)
This study surveyed 152 publicly traded companies to investigate group-performance based pay practices and its impacts on labor productivity. Compared a benchmark survey from Department of Labor, those companies show higher introduction rates, especially in small-to-medium sized companies. They also tend to pay profit-sharing bonus more in the form of company stocks and differentiate individual bonuses more by department performance than individual performance. The impact of group-performance based pay on labor productivity is positive and statistically significant. Economic value added per person in those companies adopting group-performance based pay tends to be higher and increases with the coverage of employees under the pay plan. It also reveals that the years after the play adoption are negatively associated with labor productivity.
profit-sharing;gainsharing;group-performance based pay;value added per employee;
 Cited by
Dong-One Kim, "A Congruence Explanation of the Design of Gainsharing Plans," Korean Academy of Management Review, Vol. 11, No. 1, 73-111, 2003.

Bureau of Statisics, Productivity Index-Value Added Labor Productivity, 2007.

Sungil Nam, Joon Sung Park, Gainsharing Plans in Korea, Korea Economic Research Institute, 1993.

Ministry of Employment and Labor, Investigation on Individual Incentive Payment and Group Based Pay Plan in Korean Companies, 2003.

Chang Hee Won, "Non-business Investment and Profit Sharing Plan," Korean Journal of Labor Economics, Vol.14, pp.167-189, 1991.

Kyung-Hee Lee, "Performance-based Pay System in Korea," Journal of Human Resource Management Research, vol. 5, 5-29, 2002.

Byungnam Lee, "Profit Sharing and Productivity," Winter Proceedings of Korea Labor Economics Academy, pp.7-34, 1991.

Korea Productivity Center, Value Added Analysis Report on Publicly Traded Korean Companies, 2010.

Bullock, R. J. & Lawler III, E. E., "Gainsharing: A Few Questions and Fewer Answers," Human Resource Management, Vol.23, No.1, pp. 23-40, 1984. crossref(new window)

Department of Labor, Manual for Group Performance Sharing System, 2001.

Cable, John & Wilson, Nicholas, "Profit-Sharing and Productivity: Some Further Evidence," The Economic Journal, Vol.100, pp. 550-555, 1990. crossref(new window)

FitzRoy, Felix R. & Kraft, K., "Cooperation, Productivity, and Profit Sharing," The Quarterly Journal of Economics, Vol. 102, No.1, pp.23-35, 1987. crossref(new window)

Hubler, Olaf, "Productivity, Earnings, and Profit Sharing-Econometric Analysis of Alternative Models," Empirical Economics, Vol.18, pp.357-380, 1993. crossref(new window)

Park, Rho-Keun, "the Effect of Group Incentives on Employee-Initiated Innovation and Firm Performance:Influence of Market Stategy," Korea Management Review, Vo. 21, No.1, pp.279-296, 2008.

Kaspin, J. A., "The Application and Impac of Gainsharing in Health Care Settings," Working Paper, Syracuse University, 1990.

Kaufman, Roger T., "The Effects of Improshare On Productivity," Industrial and Labor Relations Review, Vol.45, No.2, pp.311-322, 1992. crossref(new window)

Kruse, Douglas L., "Profit Sharing and Productivity: Microeconomic Evidence From the United States," The Economic Journal, Vol.102, pp.24-36, 1992. crossref(new window)

Lawler, E. E. III, "Gainsharing Theory and Research: Findings and Future Directions," W.A. Pasmore & R.W. Woodman (Ed.), Research in Organizational Change and Development, Greenwich, CT:JAI Press, 1988.

Samuelson, Paul A., "Thoughts on Profit Sharing," Zeitschrift fur die Gesamte Staatswissenschaft, 1977.

Shepard III, Edward M., "Profit Sharing and Productivity: Further Evidence from the Chemical Industry," Industrial Relations, Vol.33, No.4, pp.452-466, 1994.

Shuster, Micheal H., "Forty Years of Scanlon Plan Research: A Review of the Descriptive and Empirical Literature," International Yearbook of Organizational Democracy, Vol.1, pp.53-71, 1983.

Shuster, Micheal H., "The Scanlon Plan: A Longitudinal Analysis," Journal of Applied Behavioral Science, Vol.20, No.1, pp.23-28, 1984a. crossref(new window)

Cha, Sungho & Yang, Donghoon, "The Study on Payment System Improvement in Korean Firms," Journal of the Korea Society of Computer and Information, Vol.16, No.2, pp.267-278, 2011. crossref(new window)

Kim, Jae-Young & Cho, Boo-Yun, "An Investigation of the impact of Employer's Reards Stragegies on Employee's Commitment with Comparison of Home-based Contract Center," Journal of the Korea Society of Computer and Information, Vol.20, No.3, pp.125-137, 2015. crossref(new window)