Diagnostic Products Corporation
Case --- Diagnostic Products Corporation
Sha Wu
1) Evaluate the design and the implementation of the performance bonus program at DPC. What changes would you suggest, if any?
In this case, the FSE (field service engineers) is an important part of the whole corporation and also the system. The system is established to influence the performance of the FSEs to a desirable way and keep their customers satisfied. Therefore, the company designed a six areas method for the performance bonus program. Performance area | Evaluation way | 1.Cross-training | 10-40 Points | 2.Preventive maintenance completion | Each completion 2 Points | 3.Teamwork factor for PMs | 1%-2% of base quarterly salary+5-10 points | 4.Complete first visit | Points | 5.Call back rate | 1.33%-10.67% of base quarterly salary+ points | 6.Administrative functions | 0-25 points |
The chart shows the six areas and their evaluation ways of the program. The primary goal of the FSEs is to keep customers satisfied, so the performance bonus program is intended to achieve the primary goal. The evaluation ways can be one of the results to see if customers are satisfied. The company also did a hypothetical FSE to see if the program is efficient and get feedback to make improvement.
Overall, the performance bonus program is well-designed. However, there are some changes they can make to improve their program.
First, the rewards part is not big enough to attract employees’ attention. All we can see from the case is to give employees points and small percent of salaries. The reward should not limit in monetary reward, if an employee does a great job, manager can increase his/her salary, give monetary reward and promote him/her.
Furthermore, the IMMULITE 2000, 2500 and Sample Management System (SMS) do better than IMMULITE on FSEs. However, there is no reward about them. Are there some flaws in the system? If not, probably the DPC should use these systems to help FSEs. It mentioned that IMMULITE
Sha Wu
1) Evaluate the design and the implementation of the performance bonus program at DPC. What changes would you suggest, if any?
In this case, the FSE (field service engineers) is an important part of the whole corporation and also the system. The system is established to influence the performance of the FSEs to a desirable way and keep their customers satisfied. Therefore, the company designed a six areas method for the performance bonus program. Performance area | Evaluation way | 1.Cross-training | 10-40 Points | 2.Preventive maintenance completion | Each completion 2 Points | 3.Teamwork factor for PMs | 1%-2% of base quarterly salary+5-10 points | 4.Complete first visit | Points | 5.Call back rate | 1.33%-10.67% of base quarterly salary+ points | 6.Administrative functions | 0-25 points |
The chart shows the six areas and their evaluation ways of the program. The primary goal of the FSEs is to keep customers satisfied, so the performance bonus program is intended to achieve the primary goal. The evaluation ways can be one of the results to see if customers are satisfied. The company also did a hypothetical FSE to see if the program is efficient and get feedback to make improvement.
Overall, the performance bonus program is well-designed. However, there are some changes they can make to improve their program.
First, the rewards part is not big enough to attract employees’ attention. All we can see from the case is to give employees points and small percent of salaries. The reward should not limit in monetary reward, if an employee does a great job, manager can increase his/her salary, give monetary reward and promote him/her.
Furthermore, the IMMULITE 2000, 2500 and Sample Management System (SMS) do better than IMMULITE on FSEs. However, there is no reward about them. Are there some flaws in the system? If not, probably the DPC should use these systems to help FSEs. It mentioned that IMMULITE