| dc.description.abstract | Gainsharing is the earliest compensation system which focused on enhancing employee involvement, employee participation and translating the reductions into an increase in worker’s payouts. When properly implemented, gainshairng integrates teamwork, communication, goal orientation and performance improvement into one system. For these reasons, several organizations have already adopted gainsharing plans, including manufacturing, banks, hospitals, public sectors, and distribution, etc.
However, there are very few empirical studies concerning about the effect of gainsharing plan on retail stores performance in Taiwan. In order to fill the research gap, the study collected monthly retail productivity input and output data for 21 month period (from Jan. 2007 to Sep. 2008) for the 15 stores that have implemented the gainsharing plan and 7 stores had not (451 data points). Then, we use two ways to measure the effect of the plan, the OLS and fixed effect model.
The results indicated that the group compensation – gainsharing plan can result in significantly higher productivity in retail stores. However, with time-invariant or contextual factors which have been existed may result in plan being unsuccessful to one or more of the involved stores. Therefore, it is important that the company have to examine what conditions or factors that affect the success of gainshaing plan, and then evaluating the possibilities of introducing the plan to the other stores.
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