Productivity Gainsharing: A Federal Sector Case Study

The Office of Personnel Management's Federal Investigations Division in the San Francisco Region implemented a productivity gainsharing (PGS) program in response to pressure to increase productivity. The system analysis was conducted in 2 parts. The first part involved a statistical analysis of a data set that included production and deficiency data for 2 years preceding the PGS, 2 years of the PGS, and one year following its termination. The 2nd part involved the administration of a questionnaire to participants in the PGS experiment. Results lent persuasive support to the proposition that the installation of a PGS system achieved the goal of improving productivity as well as reducing the rate of deficiencies. However, the increased level of production was not sustained during the 2nd year of the experiment. The questionnaire responses suggested that this development resulted from the system's "newness" wearing off, an emergence of discontent, and a decline in participation.