The Scanlon plan is a gainsharing program which combines leadership, total workforce education, and widespread employee participation with a reward system linked to organization performance.
[1] The first Scanlon plan was instituted by Joseph N. Scanlon (1897–1956) a steelworker, cost accountant, professional boxer, local union president, Acting Director of the Steelworkers Research Department, and Lecturer at the Massachusetts Institute of Technology (MIT).
Scanlon believed that much distrust existed between labor and management because there was a lack of information sharing.
Scanlon believed that people were motivated by many things besides money—a chance to make a difference, pride, fellowship, etc.
[4] Scanlon's work with the Admanson Company was featured in a Life Magazine article "Every man a Capitalist" by John Chamberlain, December 1946.
His work with Lapointe was featured in a Fortune article "Enterprise for Everyman" by John Davenport, January 1950.
Two of Scanlon's colleagues carried on his work - Fred Lesieur who he had met at the Lapointe Tool Company and Dr. Carl F. Frost at MIT.
Carl Frost would take the ideas west to Michigan State University which became a center for Scanlon thought and practice for many years.
Today there are many different ways that Scanlon Systems involve employees in Organizational problem solving.