A Model of Gainsharing: Culture, Outcomes and Employee Reactions

17 Pages Posted: 14 Mar 2017 Last revised: 22 Aug 2018

Date Written: March 12, 2017


The current paper presents an integrated model of gainsharing based upon theory and research in goal setting, goal structures (e.g., competitive vs cooperative) and reactions to success and failure for different goal structures. The basic model proposes that gainsharing influences employee behavior through cooperative goals that, in turn, influence levels of performance. In addition, successful or unsuccessful attainment of gainsharing bonuses will have predictable cognitive (e.g., ability and effort attributions), affective (e.g., feeling toward others) and behavioral effects on employees. The basic process will be moderated by an number of key variables, including organization level (e.g., competitive vs cooperative cues), task level (e.g., competitive vs cooperative cues, complexity), manager level (e.g., support and expectations) and employee level (e.g., desire to participate, task knowledge, expectations).

Keywords: Gainsharing, Goal Setting, Cooperation Theory

JEL Classification: L29, D74, J39, M14, O35, M52

Suggested Citation

Farrell, James, A Model of Gainsharing: Culture, Outcomes and Employee Reactions (March 12, 2017). Available at SSRN: https://ssrn.com/abstract=2931808 or http://dx.doi.org/10.2139/ssrn.2931808

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