T
he return to a highly centralised system of wage fixation with its present constraint on productivity-
based wage increases and the current resurgence of interest in employee participation could promote an
interest in added value productivity schemes in the next few years. This article examines the mechanics of
such schemes and, drawing upon United Kingdom evidence, the authors argue that employee participation
in scheme design and implemenation is a necessary, but not sufficient, condition for scheme success.
Strategic decisions must be made by management in four key scheme-organisation relationship areas, if
productivity based schemes are to make an effective contribution to improved organisational performance.
For management to make these decisions, extensive employee participation is required throughout the
organisation and through all phases of the payment scheme.
Productivity shemes introduced in haste with limited employee participation may at best achieve several short
term goals, but the contribution such schemes can make to the strategic planning of the organisation will
be lost.
