ed specifically at the USPS (Register, 1988, p. 1186). In this context, it is often held that certain efficiency enforcing incentives present in private sector firms are absent in public sector organizations.
Productivity is defined as a "measure of the rate at which output flows from the use of given amounts of the factors of production" (Rees, 1994, p. 371). When the factors of production are used in an efficient manner, a greater output is derived from a given level of inputs; therefore, productivity increases. By contrast, when the factors of production are used in an inefficient manner, a lesser output is derived from the given level of inputs, and, in this latter instance, productivity will fall.
Productivity may mean many different things, depending upon the context in which the term is used. With the continuing advances in manufacturing technology, the multi factor productivity concept is probably the most valid measure. Multi factor productivity is the ratio of output per unit of labor and capital inputs combined, which enables the productivity ratio to reflect changes in a number of factors (such as technology, shifts in labor force composition, capacity utilization changes, research and development, work force skills and effort, and management quality) which affect the production process (Kendrick, 1994, p. 17).
Literature relative to the problem investigated is reviewed in this chapter. Review topics include compensation and productivity, job autonomy and productivity, team building, socio technical systems, and employee empowerment.
With respect to the use of compensation as an incentive for improved productivity, a significant amount of research has been reported with respect to the use of the gainsharing concept. Gainsharing is defined as a comprehensive approach to the task of improving organizational performance, or productivity (Doyle, 1992, p. 57). The gainsharing concept is comprehensive because ...