Explain what changes should be made in the wage, Operation Management

Assignment Help:

A father decides to put his two sons to work landscaping. The business involved going to a customer's home and providing landscaping services (cut gras, edge sidewalk, pull weeds in flower beds, prune bushes and trees, rake leaves). Rather than paying a flat wage, the father decides to pay an incentive according to the following schedule (average across all lawns).

At the end of the second week under this arrangement the boys are quarrelling with each other and not happy with their dad. All of the disagreements revolve around the incentive system. What might be the problems?

A) what might be the problems? Please consider: what daily wage can be earned (state you assumptions)? what controllable and uncontrollable factors may contribute to not achieving the week wages?

B) what changes should be made in the wage/pay structure?

Task Piece rate incentive per person Physical effort Time to complete per person Charge to customer

Cut Grass $4 Easy 0.4 h $30

Edge Sidewalk $1 Easy 0.1 h $5

Pull Weeds $6 Very Hard 0.5 h $40

Prune Bushes $5 Hard 0.5 h $30

Rakes Leaves $5 Hard 0.5 h $25


Related Discussions:- Explain what changes should be made in the wage

Explain how many cords of wood would he have to split, The owner of Firewoo...

The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood

Distinctive of the growth stage of the product life cycle, Which of the fol...

Which of the following is a characteristic of the growth stage of the product life cycle? Advertising emphasis switches to selective demand. There is a growing proportion of

Modern global business environment, Describe briefly, major opportunities f...

Describe briefly, major opportunities for an organisation operating in a modern global business environment.   There are several significant opportunities for an organisation o

What skills will you require to work effectively, What skills will you need...

What skills will you need to work effectively in a strategic alliance organizations?

Find the total cost of ordering and carrying semiprecious, 1. A jewelry fir...

1. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, annual carrying costs are 50%, and the cost of processing orders is $40.

Explain what pay level does the efficiency wage predict, What pay level doe...

What pay level does the efficiency wage predict? Does the theory accurately predict organization behaviour? Why or why not

Explain importance of effective leadership communication, Define logos, eth...

Define logos, ethos, and pathos and explain which of these is most important to effective leadership communication

Explain which route will maximize lynn''s utility, In the past few years, t...

In the past few years, the traffic problems in Lynn McKell's hometown have gotten worse. Now, Broad Street is congested about half the time. The normal travel time to work for Lynn

Evaluation of potential projects by weighted scoring matrix, Evaluation of ...

Evaluation of potential projects by weighted scoring matrix: A five year project has a projected net cash flow of $20,000, $25,000, $35,000, $15,000, and $25,000 in the next f

Explain generally unnecessary to have every single function, It is generall...

It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd