Section Four
Team-based pay often involves some form of gain
sharing. However, unlike gain-sharing approaches such as the
Scanlon Plan or the Rucker Plan, the gains to be shared are
sometimes linked to the accomplishment of strategic objectives.
Some strategic objectives tend to be more ambiguous than
tactical objectives and require commitment from employees
because desirable performance on their part may also be
difficult to specify. The Fibers Department at Du Pont provides
an example of a very large-scale team-based approach that
incorporated gain sharing. The department wished to increase
the emphasis on participation and team work and decided to
pursue a goal of increasing annual earnings by 4 percent.^34 The
plan was operationalized as follows:
The Achievement Sharing Program is being
phased in over approximately five years. At the
end of this period, Fibers Department employees
will be earning 6 percent less in their base pay
than their counterparts elsewhere in the
company. If the department meets its annual
profit, the employees will collect the 6 percent
difference; if profits fall below 80 percent of the
goal, they will receive a 3 percent bonus, and at
150 percent they will receive a 12 percent
bonus.^35