Factors Affecting Acquisition of Beliefs about a New Reward System

Abstract

This paper examines the relationships between individual, organizational, and interpersonal variables on the acquisition of beliefs about a new organizational reward system. The setting for the research is the introduc-tion of a companywide incentive plan (Scanlon Plan) into a manufacturing plant. Two types of beliefs are analyzed: (1) the belief that suggestion-making behavior leads to a reward (system expectancy); and (2) the belief that, given the effort, the individual can make productivity-related sugges-tions (self-expectancy). After the introduction of the reward system, managers' beliefs about this new Plan are more affected by individual level variables (e.g., educational level), while beliefs of blue-collar workers seem more affected by organizational (e.g., nature of task) or interpersonal variables. A measurement 6 months after the Scanlon Plan had been in operation seemed to indicate that the beliefs remained relatively stable. However, despite frequent bonuses from and participation in the new Plan, there was a tendency for some participants to be more skeptical about future payoffs from the Plan.