Sandy Caldwell, the new Human Resources Manager for Hathaway Manufacturing, wanted to improve teamwork at every level of the organization. As part of the process of implementing cultural change, Sandy introduced a new pay-for-performance system. The reaction to the change was immediate and “100% negative.”
2-14: Does the pay-for-performance plan seem like a good idea? Why or why not?
12-15: What advice would you give Regina and Sandy as they consider their decision?
12-16: What mistakes did they make in adopting and communicating the new salary plan? How might Sandy have approached this major compensation change a little differently?
12-17: Assuming the new pay plan was eventually accepted, how would you address the fact that in the new performance evaluation system, employees’ input affects their peers’ pay levels?
Continuing Case: Carter Cleaning Company – The Incentive Plan
12-18: Should this plan be extended to pressers in the other stores?
12-19: Should other employees be put on a similar plan? Why? Why not? If so, how exactly?
12-20: Is there another incentive plan you think would work better for the pressers? Describe it.
12-21: A store manager’s job is to keep total wages to no more than 30% of sales and to maintain the fuel bill and the supply bill at about 9% of sales each. Managers can also directly affect sales by ensuring courteous customer service and by ensuring that the work is done properly. What suggestions would you make to Jennifer and her father for an incentive plan for store managers or front-desk clerks?
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