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

Capacity Planning of Computer Systems and Networks, Problem:- 1 A system c...

Problem:- 1 A system containing one CPU and a disk is serving database transactions. A transaction gets service from CPU and then from the main memory before leaving this system. I

Explain a recruitment process, Describe a recruitment process that would pr...

Describe a recruitment process that would provide a pool of pre-qualified candidates for the seven open trainer positions.

Traditional accounting based measurements, Traditional Accounting Based Mea...

Traditional Accounting Based Measurements and Their Limitations  Neely (1999) suggests that traditional financial measures of performance are criticised because they:

Give me an instance of a preference matrix, Can anyone give me an example o...

Can anyone give me an example of a preference matrix?

Explain matching supply with demand, From "Matching Supply with Demand" Cac...

From "Matching Supply with Demand" Cachon/Terwiesch (Inventory Cost) A manufacturing company producing medical devices reported $60,000,000 in sales over the last year. At the e

Describe various barriers to successful communication, Describe various bar...

Describe various barriers to successful communication. (i) More levels in the organisation structure by which information has to proceeds. (ii) Ill-structured and long chan

System complexity - boulding taxonomy, System complexity - Boulding taxonom...

System complexity - Boulding taxonomy  To obtain an insight into the nature of the system with which the operations manager is dealing, consider the economist Kenneth Boulding

Explain management efforts and employee involvement, The decline in union m...

The decline in union membership has been mainly attributed to what four factors? Answer (1) Change in economy, employee involvement, human resources practices, and government regul

Define the elements of method study and work measurement, Define the elemen...

Define the elements of method study and work measurement. Method study and Work Measurement are elements of Work Study.

What is usefulness of flexible manufacturing systems, Q. What is usefulness...

Q. What is usefulness of flexible manufacturing systems to manufacturing operations? Flexible manufacturing systems (FMS) comprise a few machines with part and device handling

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