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Applying the Concept of Team Management in Compensation

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Applying the Concept of Team Management in Compensation
Chapter 12
APPLICATION CASE
Inserting the Team Concept into Compensation
--------or Not

Outline
Introduction&Q1------TYT
Q2------LWS
Q3------TFT
Q4------WXJ

Sandy Caldwell, a new human resource manager at Hathaway
Manufacturing wanted to improve productivity through teamwork.
He started by installing the concept of team management at the highest level, then he also conveyed the team message to employees.

He changed Hathaway long-standing policy into team-based pay for performance and he just only consulted with CEO Regina Cioffi.

Q1 : Does the pay-for-performance plan seem like a good idea? Why or why not?

The pay-for-performance plan seems like a good idea.  provide incentive for team performance  have a positive impact on the company's performance But it has some drawbacks.
 lack employee involvement  a worker's pay≠ his/her personal efforts

Q2. What advice would I give Regina and
Sandy as they consider their decision?

• Consider performance-based salary and base salary
• Work out a reasonable assessment system
• Involve employees in decision making

Performance
Performance
based based salary salary Feel
Feelsatisfaction
satisfaction

Base
Base
salary salary Feel
Feelno
no dissatisfaction dissatisfaction

How to evaluate employees performance by their contributions to their teams?
How to prevent employees’ subjectivity on judging their colleagues, like personal relationship. How to increase efficiency?

Decision
Decision
Making
Making

Q3.What mistakes did they make in adopting and communicating the new salary plan? How might Sandy have approached this major compensation change a little differently.

1.Sandy didn’t ask employees’ suggestion about the new salary plan ,and it was undemocratic for staff .
2.Just using one method:360-degree feedback assessed employees.
* Ignored( 被忽略 )

Result

* Unsatisfied
* Doubtful

1.Manager Sandy should admit the mistake and make an apologize for their staff because of ignorance.
2.Sandy should

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