From: John Conover <john@email.johncon.com>
Subject: Re: Implementation of Pay for Performance/Tribus
Date: Tue, 27 Aug 1996 04:59:30 -0700
John Conover writes: > Myron. Tribus writes: > > Hi Myron. Many years ago, there was a formal study initiated at > Westinghouse, as I remember it, (or perhaps it was ATT or GE,) where > productivity vs. incentive was analyzed in a telecommunications > equipment manufacturing line. The manufacturing line was divided into > two sections-a variable and a control group. The idea was that the > variable group was to receive additional incentives, and the effects > of the incentives on enhanced productivity were evaluated. The > variable group was given cash rewards for "quality," numerical > outputs, etc., and, as expected, productivity increased. They were > given an assortment of other incentives, and, likewise, productivity > increased. All was fine until someone noticed that the productivity of > the control group, also, was increasing. To evaluate the enigmatic > nature of the results of the study, all of the incentives of the > variable group were removed. The productivity of both groups > increased, yet again! The study is often cited by Lester Thurow(sp) of > MIT, arguing that managers should consider incentives as only one tool > in the managerial "toolbox," that is to be used in conjunction with > all of the other tools. FWIW. > Opps! Let me correct myself. It was the Hawthorne experiments, (The "Hawthorne Effect,") and it was not Westinghouse, as I had posted, but Western Electric where the study occurred. Apologies for wasting the bandwidth ... John -- John Conover, john@email.johncon.com, http://www.johncon.com/