A Group Wage Incentive System for Production Workers at Pearl Harbor Naval Shipyard: Test and Evaluation
Technical rept. Jan 1983-Nov 1984
NAVY PERSONNEL RESEARCH AND DEVELOPMENTCENTER SAN DIEGO CA
Pagination or Media Count:
This report describes the implementation and evaluation of a group wage incentive system for production workers in a naval shipyard. The system provided periodic rewards to groups of civil service workers performing above standard. A description of the system and an evaluation of its effects during the first 19 months after implementation are provided. Improvements were found in the areas of performance efficiency, accuracy of labor accounting, and adjustment of staffing levels to changing workload situations. The shop showed a 7.5 percent improvement over baseline performance during the last 11 periods of the 19-period system test. During the first 8 periods, the shop maintained its baseline performance efficiency level in spite of a severe workload reduction. Performance in two shops used for comparison showed substantial decreases in performance efficiency during the same time, although their workload reductions were less severe than that of the test shop. A cost savings analysis revealed a net cost savings in excess of 600,000 due to improvement over baseline performance that occurred during the system test. At current performance levels, shipyard cost savings will approach 2,000,000 during 1985. It was recommended that shipyard managers consider using the incentive system in other production shops and shipyards.
- Personnel Management and Labor Relations