Description: To meet global competition many companies have reorganized work process systems, eliminated management levels, formed employee work groups and implemented variable compensation systems. This study investigated the effect of group incentives on individual sales performance in two specialty shops located in a large metropolitan hotel. Two questions were addressed: What effect would adding a group bonus plan have on individual employee's sales performance who had previously received hourly wages in one shop; and, what effect would changing an individual incentive plan to a group plan have on the individual employee's sales performance in the other shop. In one shop 5 of 7 employees' productivity increased: in the other, 1 of 3 subjects' productivity increased. Contingencies in both shops are analyzed and suggestions offered for future research.
Date: May 1994
Creator: Bohrer, Kathleen