The Scanlon Plan: A Longitudinal Analysis

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Abstract
This article examines the operation and effectiveness of the Scanlon Plan in a large manufacturing plant. The research combined a case-study approach with an interrupted timeseries design. The researcher assessed productivity (measured as output per hour) level of employment, and voluntary turnover on a monthly basis during a seven and one-half to nineyear period. The results of the regression analysis indicated an abrupt positive change in productivity, followed by positive trends for two product lines. The plant's employment and turnover remained stable, in contrast to wider shifts for the industry. The Scanlon Plan paid consistent bonuses, and the production committees generated more than 2,477 suggestions, of which 70% were implemented.