A Performance-Contingent Reward System That Uses Economic Incentives: Preliminary Cost-Effectiveness Analysis.
Abstract:
The cost-effectiveness, cost-savings projections, and related issues of a Performance-Contingent Reward System PCRS that uses economic incentives were evaluated. The PCRS was tested on federal civil service data transcribers in the Management Information System Department of the Long Beach Naval Shipyard LBNSY. Evaluation of the PCRS was conducted primarily from the following perspectives 1 The cost-effectiveness of the proposed PCRS relative to former production conditions at the test site 2 Issues involving the generalizability of the test-site results to other Navy activities with substantial concentrations of data transcribers and 3 Projections of PCRS-induced cost savings in terms of specified outyears, levels of aggregation of data transcribers, and levels of generalizability of test-site results. It is recommended that managers of Navy activities with large numbers of civil service data transcribers evaluate the results of the PCRS field test from the perspective of possible implementation as their activities. Such managers should give special attention, of course, to issues underyling the generalizability of LBNSY results to sites under their control. Author