Daily Incentive and Jump-base in a Non-Real-Time Apparel Manufacturing Context

Authors

  • Robert Dean Morrison Coordinator: Industrial & Petroleum Technology Programs College of Business Office: MESA 2232 University of Texas Permian Basin Odessa TX 79762 http://orcid.org/0000-0003-0533-7326
  • Juan Angel Chavarria Department of Accounting, Information Systems, and Finance College of Business Cremer Hall 421 Emporia State University Emporia, KS 66801 http://orcid.org/0000-0002-5966-4181
  • Claudia Patricia Dole Office of the Executive Vice President for Academic Affairs University of Texas Rio Grande Valley 1201 W University Drive Edinburg TX 78539 http://orcid.org/0000-0003-4312-7848
  • Brenda Maritza Dole College of Business and Entrepreneurship University of Texas Rio Grande Valley 1201 W University Drive Edinburg TX 78539

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.

Author Biographies

  • Robert Dean Morrison, Coordinator: Industrial & Petroleum Technology Programs College of Business Office: MESA 2232 University of Texas Permian Basin Odessa TX 79762
    Assistant Professor of Business & Technology
  • Juan Angel Chavarria, Department of Accounting, Information Systems, and Finance College of Business Cremer Hall 421 Emporia State University Emporia, KS 66801
    Assistant Professor of Information Systems
  • Claudia Patricia Dole, Office of the Executive Vice President for Academic Affairs University of Texas Rio Grande Valley 1201 W University Drive Edinburg TX 78539
    Director of Academic Budgets and Resource Management
  • Brenda Maritza Dole, College of Business and Entrepreneurship University of Texas Rio Grande Valley 1201 W University Drive Edinburg TX 78539
    Graduate Student

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Published

2020-03-05

Issue

Vol. 11 No. 2 (2020)

Section

Peer Reviewed Article

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