Case 1 – Individual or Team Reward?
The case considers the consequences of implementing an incentive-based payment scheme in order to increase employee efficiency in producing furniture. Sally Boston, the CEO of Metropolitan Furniture, is trying to evaluate whether an individual or team-based incentive approach would be better in motivating employees. Jack Hopson, a new employee with over ten years of experience in making furniture, advises Sally to use a piece-rate pay plan to motivate her employees to produce more furniture. This plan would award each employee based on their individual output. Jack claims that the plan worked well at his previous employer, but Sally considers the ramifications of such a plan due to Metropolitan Furniture discerning itself from its competitors through its promise of on-time deliveries. Due to the need for employees to oftentimes work as a team to complete furniture pieces, Sally believes that a piece-rate pay plan could hinder their delivery times. Therefore, Sally feels conflicted in whether to choose a team-based incentive or to follow the advice of Jack and choose the piece-rate pay plan (which has previously seen success at other companies).
1. What are some of the advantages of offering a piece-rate pay plan to the furniture builders at Metropolitan Furniture?
According to pages 91-92, there are four advantages of offering an individual incentive pay plan.
2. What are some advantages of offering a team-based incentive pay plan?
According to page 98, there are two main advantages to using group-based incentive plans.
JUST ANSER THE FOLLOWING QUESTION
3. What do you think Sally should do?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more