Publication Date

April 1993


This study examines the behavioral consequences of gainsharing using a combined theoretical framework that includes elements of agency and procedural justice theory. The hypothesis tested is that gainsharing as a collective form of incentive alignment results in increased mutual monitoring among agents (employees) when the plan is perceived to be procedurally fair. The hypothesis was supported in two separate firms using a quasi-experimental field study. The implications of the study for future extensions of agency theory to examine intraorganizational phenomena are discussed.


Suggested Citation
Welbourne, T. M., Balkin, D. B. & Gomez-Mejia, L. R. (1993). Gainsharing and mutual monitoring: A combined agency-procedural justice interpretation (CAHRS Working Paper #93-12). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.