American Accounting Association 2006 Midwest Region Meeting March 30 – April 1 Chicago, Illinois

Friday, March 31, 4:00 p.m. to 5:40 p.m.
Concurrent session 4A - Belief Revision and Evidence (Accounting, Behavior and Organizations)

Title: An exploration of the effects of procedural justice perceptions of a gainsharing plan on motivation and work effort

Frances A. Kennedy Clemson University

James M. Kohlmeyer, III East Carolina University

ABSTRACT: This study examines the use of a gainsharing reward system to channel employees’ work efforts. After a history of losses, the plant was purchased by private individuals with consulting experience in culture change. The new owners implemented a target-based gainsharing program to motivate and stabilize the workforce. Prior research suggests that fairness issues concerning gainsharing plans have important consequences for a business organization and its employees. Our study extends this research by examining the relation between perceived procedural fairness of the gainsharing plan, locus of control, intrinsic motivation and their subsequent effects on work effort.

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