Incentives and Productivity
Karen N. Chavis
Instructor: Ruizhen Hardin
October 15, 2012
Incentives and Productivity
Background and Introduction
Over the past several years, I have been employed by two companies that specialize in healthcare revenue cycle management. My particular job function focuses on eligibility for benefits. On a small-scale level, I work with patients who are uninsured to determine what type of benefits they may be eligible for to pay their hospital bills. On a larger scale, my job helps generate revenue for the hospital at which I am stationed. It also helps reduce the hospital’s allowance for bad debt, which in turn makes the hospital look more ...view middle of the document...
By analyzing existing research on the topic, I hope to find that utilizing incentives in the workplace does in fact increase the productivity of employees.
In order to determine if the use of incentives in the workplace increases worker productivity, I plan on analyzing existing research on the topic. Specifically, I will analyze the data collected in the study “Effects of group feedback, goal setting, and incentives on organizational productivity” by Drs. Robert D. Pritchard, Steven D. Jones, Philip L. Roth, Karla K. Stuebing, and Steven E. Ekeburg. This study was experimental in nature and sought to compare the effectiveness of several motivational techniques, including incentives, on the productivity level of the sample group. From this I can gather the effectiveness of incentives on workplace productivity and potentially reject the null hypothesis.
The research group chose to sample “five organizational units at an Air Force base in the southwest United States,” (Pritchard et al, 1988). The five units consisted of: Communications and Navigation with personnel ranging from 29-35 during the course of the study, Receiving (15 average employees), Storage and Issue (15 average employees), Pickup and Delivery (13 average employees), and Inspection (7 average employees). All of these departments worked together in the supply chain to keep processes moving smoothly.
Measure of Productivity
In order to determine if productivity has improved as a result of the treatments, the research group was forced to determine a method of evaluating productivity. Productivity is defined by most as “both efficiency and effectiveness… are necessary for a complete definition of productivity. One such definition is that productivity refers to how well an organization uses its resources to achieve its objectives,” (“Productivity”, 2004). The research group decided on ProMES, which is described as “approach to measuring productivity that include[s] methods of going from what we call products to obtaining objective indicators of how well these products were being done,” (Pritchard et al, 1988). Essentially, this method of evaluation involves several steps. First, the products must be defined. ‘Product’ is defined in this instance as a set of responsibilities or actions that are expected of an individual or organization. Next, indicators must be defined. These indicators are specific to the products being analyzed, and are specific units of measure that indicate how well the product is being generated. Next, contingencies must be defined. “A contingency is the relation between the amount of the indicator and the effectiveness of that amount of the indicator,” then “the effectiveness level of the maximum and minimum indicator levels would be established.” (Pritchard et al, 1988). Essentially, “These effectiveness scores have a distinct meaning. A score of zero would mean...