Employee Behavioral Change Under Gainsharing: The Effects of Gainsharing Satisfaction

Abstract

This paper analyzes the behavioral consequences of employee psychological involvement in gainsharing. We propose that employee satisfaction with gainsharing influences both active and passive forms of peer monitoring, which, in turn, leads to entrepreneurial and organizational citizenship behaviors. The hypotheses were supported in a longitudinal field study of 196 employees and managers working in two different factories of a firm. We also found that managers and employees perceived peer monitoring differently. Our study sheds light on how gainsharing satisfaction influences employee behaviors that contribute to the success of gainsharing.