C. Karlsson et P. Ahlstrom, CHANGE PROCESSES TOWARDS LEAN PRODUCTION - THE ROLE OF THE REMUNERATION SYSTEM, International journal of operations & production management, 15(11), 1995, pp. 80
Explores the role of the remuneration system in the implementation pro
cess when introducing a complex manufacturing strategy, lean productio
n. Exploratory clinical research in a mechanical manufacturing company
was used and three areas of findings emerged. First, there is a need
for congruence in time between organization and remuneration, since th
e remuneration system serves both as an obstructing and a facilitating
force in the process. There is also a need for congruence between the
principles of the organization and remuneration. Converting the compl
ex goals of the manufacturing strategy into a correspondingly elaborat
e remuneration system is essential. Finally, proposes a two-part remun
eration system for lean manufacturing. The first part of the system is
a response to the founding principles of lean manufacturing: focusing
on the competence of the individual. The second part is formed to rem
unerate the outcomes of a lean manufacturing system based on the perfo
rmance of the team.