THIS PAPER DEALS WITH THREE PROBLEM AREAS ASSOCIATED WITH GAINSHARING PLANS. THE FIRST PROBLEM THAT IS DISCUSSED DEALS WITH THE ADVERSE AFFECTS OF GAINSHARING ON SOME EMPLOYEES, IN THAT GAINSHARING OFTEN RESULTS IN A LOSS OF JOBS. SECONDLY, OVERTIME IS OFTEN REDUCED OR ELIMINATED WHICH MAY LEAD TO SOME DISSATISFIED WORKERS. FINALLY, SOME OF THE MOTIVATIONAL PROBLEMS ASSOCIATED WITH GAINSHARING ARE DISCUSSED.
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