Profit Sharing for the Public Sector: the Shared Savings Program in Pittsburg, California

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Profit Sharing for the Public Sector: The Shared Savings Program in Pittsburg, California The case talks about the development of the new motivation in public sector happened in Pittsburg, which had many identities over the years and new residents have more and more demand on public service. Robert Soderbery, an enterprising entrepreneur, appointed the public works department rather than private business to offer the lowest cost and the most efficient performance in town. At the beginning, to cut the department’s cost, Soderbery took two methods, which include the reduction of reliance on civil service employees and temporary work force instead of employing seasonal help. By using these methods, Soderbery could flexibly hire employees to make his department like a business. Then he created the piece-work program, which incentives employees with more freedom. The program, however, faces a serious obstacle concerning the difference of two types of employees-the clock-punches and the go-getters-. In this process, Soderbey discovered that discipline could not motivate the employees and improve production, while he wanted to get more from employees. Money is the central factor to incentive the employees. So he created the Shared Savings Program having nine primary features. Briefly to say, “ Do not give them more money on a silver platter and they have to have a vested interest.” Luckily, Donato, city manager, regarded the Shared Saving Program as an effective way to survive financially and do the kinds of things socially and physically for our community. At the same time, Donato mitigated the risk that the program might be seen as giveaway of public funds to response the argument about the program. Obviously, the implement is difficult because many employees did not trust Soderbery’s management. Moreover, there existed the tension between Shared Savings members and

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