School of Accountancy Faculty Publications and Presentations
Document Type
Article
Publication Date
3-5-2020
Abstract
This study summarizes piecework incentive systems and examines two apparel manufacturing factories that used daily incentive calculations at one time and weekly incentive calculations at another. In addition, one factory implemented a multiple base-rate incentive system, often called jump-base. The data shows that, when not controlled, daily incentive can facilitate operators engaging in fraudulent activity such as ticket-holding. With fraud controlled, daily incentive calculation makes little difference in overall pay; therefore, it may have individual level motivational effects by nullifying the effect of averaging one-bad-day into the week. While jump-base may enhance productivity in lower performing operators or modules, one must take great care when designing such systems.
Recommended Citation
Morrison, R.D., Chavarria, J.A., Dole, C.P. and Dole, B.M., 2020. Daily incentive and jump-base in a non-real-time apparel manufacturing context. Journal of Textile and Apparel, Technology and Management, 11(2).
Publication Title
Journal of Textile and Apparel, Technology and Management
Comments
The authors retain rights to the educational and research uses of the paper, such as teaching and exchange of the published or pre-publication version of the paper with colleagues, for non-commercial purposes.