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

Relation of process design to types of process flow, Relation of Process De...

Relation of Process Design to Types of Process Flow There is a definite relationship between the production process and process flow. For continuous manufacturing the methods an

Explain inadequate strategic planning, Do you think that inadequate strateg...

Do you think that inadequate strategic planning was a factor that resulted in the company's asking for trade protection?

Calculate the quarterly index, Over the past year, Meredith and Smunt Manuf...

Over the past year, Meredith and Smunt Manufacturing had annual sales of 10,000 portable water pumps. The average quarterly sales for the past 5 years have averaged: Spring 4,00

Explain what is the expected project length, Task time estimates for a prod...

Task time estimates for a production line setup project at Robert Klassen's Ontario factory are as follows: Immediate Activity Time (in hours) Predecessors A 6.0 - B 7.2 __ C

Explain improve motivation of the employees, You are a manager of a Consult...

You are a manager of a Consulting firm, with 25 employees under your supervision. Employee Motivation appears to be slipping as well as employee performance. Employees seem to have

Explain what use of the term sale rather than demand presume, What does use...

What does use of the term sales rather than demand presume?

Calculate first''s rop, First Printing has contracts with legal firms in Sa...

First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper

Write the facultyids of faculty who are not qualified, Using the following ...

Using the following tables (primary keys are underlined), write the expressions that follow in SQL. STUDENT (StudentID, StudentName) FACULTY(FacultyID, FacultyName) COURSE(CourseID

Operation function, meaning of operation function in operation management

meaning of operation function in operation management

Steps in layout planning and design, Steps in Layout Planning and Design ...

Steps in Layout Planning and Design For a given product at a stated volume of production a process most appropriate must be determined. The process that is determined like any

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