Explain what do you think sally should do, Operation Management

Assignment Help:

Case 2 Individual or Team Reward? Jack Hopson has been making wood furniture for more than ten years. He recently joined Metropolitan Furniture and has some ideas for Sally Boston, the company's CEO. Jack likes working for Sally because she is very open to employee suggestions and is serious about making the company a success. Metropolitan is currently paying Jack a competitive hourly pay rate for him to build various designs of tables and chairs. However, Jack thinks that an incentive pay plan might convince him and his co-workers to put forth more effort. At Jack's previous employer, a competing furniture maker, Jack was paid on a piecerate pay plan. The company paid Jack a designated payment for every chair or table that he completed. Jack felt this plan provided him an incentive to work harder to build the furniture pieces. Sally likes Jack's idea, however, Sally is concerned about how such a plan would affect the employees' need to work together as a team. While the workers at Metropolitan build most furniture pieces individually, they often need to pitch in and work as a team. Each worker receives individual assignments, but as a delivery date approaches for a pre-ordered furniture set due to a customer, the workers must help each other complete certain pieces of the set to ensure on-time delivery. A reputation for on-time delivery differentiates Metropolitan from its competitors. Several companies that compete against Metropolitan have a reputation of late deliveries, which gives Metropolitan a competitive edge. Because their promise of on-time delivery is such a high priority, Sally is concerned that a piecerate pay plan may prevent employees from working together to complete furniture sets. Sally agrees with Jack that an incentive pay plan would help boost productivity, but she thinks that a team-based incentive pay plan may be a better approach. She has considered offering a team-based plan that provides a bonus payment when each set of furniture is completed in time for scheduled delivery. However, after hearing from Jack about the success of the piecerate pay plan at his previous employer, she is unsure of which path to take. 1. What are some advantages of offering a piecerate pay plan to the furniture builders at Metropolitan Furniture? 2. What are some advantages of offering a team-based incentive pay plan? 3. What do you think Sally should do?


Related Discussions:- Explain what do you think sally should do

Explain what benefit would using the optimal order quantity, Garden Variety...

Garden Variety Flower Shop uses 760 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

Explain evaluating corporate contributions, In one paragraph supported by y...

In one paragraph supported by your text and other research, describe the criteria you would use if you were a manager charged with evaluating corporate contributions to decide whet

What is collective bargaining process, What are three cost-containment meas...

What are three cost-containment measures that were implemented through the collective bargaining process in 1985? Why were these considered milestones in curtailing health benefit

When manager focus the progress of an affirmative action, when manager moni...

when manager monitors the progress of an affirmative action program to advance minorities within the corporation; reviewing progress on changing in staff attitude; calls a special

Explain a linear trend line for expected freight car, Freight car loadings ...

Freight car loadings over a 12-year period at a busy port are as follows: Week Number Week Number Week Number 1 220 7 350 13 488 2 245 8 360 14 475 3 274 9 440 15 499 4 275 10 380

Explain how to expand company, How to expand company, drive growth, and not...

How to expand company, drive growth, and not sacrifice margins?

Explain internal resources and capabilities, Analyze Procter & Gamble's (Ca...

Analyze Procter & Gamble's (Case 8) resources and capabilities as well as its structures and systems. Internal resources and capabilities. How should P&G's strengths be leverage

Explain product focused, 1. What are the key characteristics that would cla...

1. What are the key characteristics that would classify Wheeled Coach as a repetitive focus process strategy? 2. Let's assume you are a new hire at Wheeled Coach. Your manager a

Explain what are the different types of strategies, What are the different ...

What are the different types of strategies? What are the differences among these strategies? How do you determine which type of strategy is most appropriate for your organization?

Advantages of work measurement, Advantages of Work Measurement: 1.    ...

Advantages of Work Measurement: 1.        It serves as a basis  for  methods  analysis by comparing  the efficiency  of alternative  work  method. Other  conditions  beings  t

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