Motivating performance in innovative manufacturing plants

A study of 105 innovative plants suggests that these plants use financial incentive plans to motivate manufacturing performance along traditional dimensions (i.e., productivity, quality, and short lead-time) and intrinsically motivating jobs to motivate manufacturing performance along innovative dimensions (i.e., customized and innovative products). When financial incentive plans are used extensively, however, intrinsically motivating jobs do not motivate manufacturing performance along innovative dimensions. The implications for motivating performance at innovative manufacturing plants are discussed.