Re: Network Engineer Bonus Program

[TQNELSON@aol.com]

In a message dated 5/5/1999 9:41:27 PM Pacific Daylight Time, 
shw12345@aol.com writes:

<< How would you propose to cut this program out or phase it out, considering 
Deming's methodology?  >>

One possibility is to move to a "gainsharing" model. The one I designed was 
approved by WED (as, note, not a stand alone change but as part of a system 
redesign).

Similar to "profit sharing," yet different in key ways (ref. "Beyond 
Participative Management," Gilbert & Nelson, Greenwood Press, 1991 for full 
details) the general approach went like this:
	a.) everyone in the workplace is part of a system
	b.) we really don't know all the system relationships and 
interrelationships present
	c.) we don't know/haven't the data to determine if a variation is 
system caused or not (though, from WED, we can accept that 90% plus are 
system caused).

Based on the above the organization (in our case some 1600 people) could 
calculate (forecast) a budget, by quarter, for the next year (note making 
real adjustments as reality changed).

When the organization compared quarterly budget/outlay to quarterly income 
(using both moving average calculations, and examination for obviously 
assignable causes (e.g., new equipment documented as faster, addition/loss of 
customers, disaster/emergency effects, etc.), if the intake was greater than 
the expenses, the sum was divided in two parts.  The first part went to the 
organization to fund training and education of the workforce (the 
organization, as 50% of the system got 1/2). The second half  was divided by 
the total number of  people in the organization and paid as a quarterly 
"gainsharing." (Use of quarterly payments is much more effective than annual, 
for by the time the annual payment is received nobody remembers the specific 
events that led to it.)

There's much more to cover, obviously, and if there is interest we can expand 
at a later date.

Del Nelson
American River College

When "We, the people..."
are replaced by dollars, profits, and greed,
it is time to start over
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