FACTORS THAT INFLUENCE OPERATING PERFORMANCE THROUGH THE USE OF EARNINGS OR GAINSHARING PLANS: EVIDENCE IN BRAZIL'S CHEMICAL INDUSTRY

Abstract

The purpose of this Paper is to study: 1) Employee incentive programs, more specifically Gainsharing schemes in the Brazilian chemical industry; 2) Factors with positive effects upgrading the operating performance of the organizations that adopt them. The operating performance includes the following dependent variables: better quality; higher productivity; lower production costs; streamlined production process; and higher average bonus rates paid to the employees. The independent variables analyzed in this study were: employee involvement; method of measuring productivity; consultant involvement; bonus payments; employee votes; financial situation in the company; trade union support and involvement. The findings of an analysis of the data covering 110 companies through the Probit multivariate analysis proves the hypothesis that incentive programs have positive effects on managerial perceptions of the improvement in corporate operating performances.