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Team Based Gainsharing Program Implementation In A Polycarbonate Lens Factory Indonesia
Milind Gadre, Michelle Yit
Pages - 44 - 64     |    Revised - 08-10-2021     |    Published - 20-12-2021
Volume - 0   Issue - 0    |    Publication Date - December 20, 2021  Table of Contents
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KEYWORDS
Gainsharing, Key Performance Index, Lens Manufacturing, Indonesia.
ABSTRACT
Manufacturing factories often use gainsharing (collective performance rewards to incentivize their employees) as a tool to improve performance measures and goals. In this study, a team-based gainsharing program was adopted by a polycarbonate lens manufacturing company to meet its objective of increasing productivity and improving profitability in Indonesia. To test the effectiveness of a gainsharing program in improving Key Performance Indicators (KPI), a quantitative method is used for collecting and trending KPI results against gainsharing payouts. The KPI and calculation of gainsharing payout was set by the factory management. Data from the factory was collected and tabled on a monthly basis for a period of six (6) years. The early stages of the study were met with challenges and the initial outcome was not receptive. The criteria and incentives in the program were then re-evaluated and revised with total buy-in and active participation from the management. Empowerment and team-based training, outbound team outings, conflict resolution workshops with internal and external stakeholders were conducted. The hypothesis was proven correct where gainsharing did have a positive impact on meeting KPIs. In meeting the improved KPIs, the gainshare amount from the program was paid out. The findings support earlier studies. The changes made, in the context of a collectivist society, were the percentage payouts which were different for departments were merged into one single payout for all. This study confirmed when there is a good alignment between gainsharing and performance measures put in place, the gainsharing program could succeed. The collectivist element consideration, clear communication, stakeholders’ involvement, and the factory management willingness to do some tweaking and revision to the gainsharing program made this study a success. The factory management enjoyed the benefits of gainsharing; it was able to attract and retain talents and its gross margin grew by 87%.
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Mr. Milind Gadre
Hoya Vision Care c/o, School of Business Management, Institute Technology Bandung, Jakarta, 12950 - Indonesia
milindgadre1962@gmail.com
Miss Michelle Yit
School of Business Management, Institute Technology Bandung, Jakarta, 12950 - Indonesia