Productivity improvement in a purchasing division: The impact of a performance contingent reward system

A performance contingent reward system was developed for small purchase buyers and supply clerks in a purchase division of a naval shipyard. The rewards were financial incentives provided to individual civil service employees who performed above standard. A description of the system and an evaluatio...

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Bibliographic Details
Published in:Evaluation and program planning 1985, Vol.8 (2), p.121-134
Main Authors: Nebeker, Delbert M., Neuberger, Brian M.
Format: Article
Language:English
Subjects:
Armed Forces
Job Performance
Productivity
Purchasing
Rewards
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Summary:A performance contingent reward system was developed for small purchase buyers and supply clerks in a purchase division of a naval shipyard. The rewards were financial incentives provided to individual civil service employees who performed above standard. A description of the system and an evaluation of its effectiveness in increasing productivity and saving costs are provided. Results show that the system increased productivity and reduced costs substantially.
ISSN:0149-7189
DOI:10.1016/0149-7189(85)90007-2