Submitted by IBO Group 8 comprising of the following members
Hitesh Deva (2013118)
Kavya Anand (2013133)
Kushaal Verma (2013138)
Manan Rindani (2013143)
Navya Mukhi (2013162)
Prannoy John Bose (2013141)
Shalini Sinha (2013331)
INTRODUCTION
This case revolves around Dr. Jack Perry, the protagonist, is proprietary dentist clinic. Dr. Perry is a successful dentist in a small town of Cromwell in Canada. He had purchased the practice from a retiring dentist and has been successful in his practice considerably. However, he now faces a management problem of motivating his employees who are suffering from low morale and do not seem to be working as hard as they could to help increase the revenue of the clinic.
Dr. Perry, had attended a dental conference in Chicago in 2005, and recalled two approaches to profit sharing which would help in motivating the employees. He now faces the dilemma as to which one of the two pay structures would be best suited for his practice as selecting a wrong pay structure could lead to further de-motivation of his employees.
BACKGROUND OF THE CASE
Dr. Jack Perry has managed to run a thriving dentistry practice in Cromwell which had a population of only 3000 and served an additional 7000 people from the surrounding areas. He had little competition in the form of 3 other dentists. Dr. Perry has sound financials and is witnessing a growth rate of 15 % annually.
In conformance with industry norms Dr. Perry employs three categories of employees namely, receptionists, hygienists and assistants. At present he employs two part time receptionists, two full time hygienists, one full time assistant and one part time assistant. His employees were paid their wages at competitive hourly rates prevalent in the market. In addition to their hourly wages, they were given an Annual cash bonus of $400 during Christmas which was well appreciated by his