Gain Sharing as a Part of an Integrated Approach to Management

Coates, Kevin David (1988) Gain Sharing as a Part of an Integrated Approach to Management The University of Queensland:

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Author Coates, Kevin David
Title of report Gain Sharing as a Part of an Integrated Approach to Management
Formatted title

Publication date 1988
Place of publication The University of Queensland
Total pages 114
Language eng
Subjects 1503 Business and Management
Formatted abstract
The objective of this research report was to investigate the establishment of a gain sharing scheme for the Power Brewing Company. Gain sharing was defined as any form of financial employee participation and as such could include productivity sharing, profitability sharing or employee share schemes. The realisation that gain sharing cannot usually be made to work by itself in an organisation was recognized and allowed for in the overall culture of the company. This company is very different in its approach to management/employee relations. Employee participation and development are held as key corporate priorities. Such factors as the degree of employee participation and managements approach to employee relations are frequently cited in the literature as necessary requirements for gain sharing schemes to be effective. It is not the gain sharing scheme which makes the organisation a success, rather it is the rest of the organisation which makes the gain sharing a success.

To investigate the gain sharing requirements and potential of this company a series of discussions were held with both top management and employees regarding the wide field of gain sharing schemes. These discussions were followed by a questionnaire to all employees which sought to establish two main issues, did employees want gain sharing and if so what formes) of gain sharing were preferred.

Results of the questionnaire clearly indicated that employees were unanimous in their requirement for a gain share scheme. The types of schemes preferred were employee share schemes followed by profit sharing schemes. These results were favourably accepted by management, the chairman of the Power Brewing Company Board of Directors, Bernard Power, had as part of his vision for the Power Brewing Company an organisation where all employees would be part owners and shareholders. This goal congruence between top management and employees ensured that the resulting employee share scheme would be a tremendous success.

An employee share scheme was established and commenced before the public launch of the company on the Australian Stock Exchange. Again a participative approach was adopted with time and effort being invested to carefully explain the .scheme fully to all employees prior to its commencement. As a result, the response rate for the employee share scheme was 100%, such a response rate has not been quoted before for such a scheme as this, at least to this authors knowledge. In fact many employee share schemes both in Australia and overseas report low levels of participation.

Another choice for gain sharing was the introduction of a profit sharing scheme. A rough outline for a 'scheme is proposed in this report, but is some distance( away from acceptance at this point in time.

The future success of this gain share plan will unfold in time and depend on many issues. Providing the organisation continues to follow the culture which it has established and continues to develop this culture, ~he future looks bright for both the gain share plan and the organisation.

Document type: Research Report
Collection: MBA reports
Citation counts: Google Scholar Search Google Scholar
Created: Tue, 14 Dec 2010, 10:37:07 EST by Mr Yun Xiao on behalf of The University of Queensland Library