Alliston Instruments Case Summary
Alliston Instruments needs an individual pay system that reward employees based on each item produced that meets the high-quality standards instead of rewarding them based on each piece produced. In addition, they need to spend less money on their incentive program as the firm is currently operating at a loss due to high labor cost. For this reason, I would recommend them to switch to merit bonus system.
Rationale:
Bonus does not have to be a fixed amount. It can be varied from year to year depending on the financial conditions of the firm. (Long, 2014)
Can be a power tool to keep employees motivated and engaged as bonuses are given only for the period in which good performance occurs, and good performance must be repeated each year in
Rationale:
Bonus does not have to be a fixed amount. It can be varied from year to year depending on the financial conditions of the firm. (Long, 2014)
Can be a power tool to keep employees motivated and engaged as bonuses are given only for the period in which good performance occurs, and good performance must be repeated each year in