The Scanlon Plan: Causes and Correlates of Success

Abstract

The Scanlon Plan (SP) is a systematic approach to enhancing organizational effectiveness through a formal participation program and a financial bonus. It has met with varying degrees of success. The present study is an investigation of factors that account for this variation in success. SP success was found to be positively related to the average level of participation in decision making reported by employees, to the number of years a company had had an SP, managerial attitudes, chief executive officer's attitudes, and expected level of SP success; but not related to company size.