Introduction
The Pearl River Delta has been a prosperous industrial area as many other areas in China in the last 3 decades. Although there is still growing demand for garment products the competition between factories has become fierce and factories will go the extra mile to keep clients’ satisfaction and deliver goods on time. Apart of the competition between factories, there are other threats which are making the Pearl River Delta less attractive for apparel firms. (a) The RMB is not as attractive for apparel companies as it used to be. (b) There are other countries like Bangladesh, Panama, Sri Lanka who offer cheaper production prices. In the past more and more Chinese came from the villages to work in the industrial areas in the big cities. Now days and as a result of the "one child policy" the factories are no longer as attractive working places as before and hiring experienced workers is becoming more challenging than ever. As a result the factories are looking for ways and the knowledge how to increase their employees' efficiency thus increase the productivity.
This research will examine one such factory. This factory has 620 employees. The senior management has ...... Insert a drawing of the organizational structure.
The problem
The management believes that the number of employees and number of machines is sufficient to carry out client’s order on time. Nevertheless, in the past year, they experienced client’s complaints and had to pay penalty. The factory has an incentives scheme Details of the incentives scheme !!!
The management decides to investigate if former experience of employees affects their job performance and if indeed so much effort should be put into finding employees with previous experience. Another line of investigation is to check if the company's incentive scheme is leading for a better job performance.
Literature Review
Research shows that merit pay, that is a permanent