Strategic Managment Assignment
1) IS AN INCENTIVE PROGRAM APPROPRIATE? EXPLAIN YOUR POSITION?
Answer: looking at the current scenario, incentive program is very appropriate. This is because, it help the employer to identify the various factors like motivation, skills, recognition, etc. for an employee. Incentive program can also be used to counter failure in the organizations i.e. failure in meeting targets, poor behavior, or performance
2) IF SO, SHOULD THERE BE ONE, TWO OR SEVERAL PLANS?
Answer: There should be several incentives programs like point program, employee incentives (which can be used to increase employee moral), sales incentives (which can be used to drive sales and reduce costs and increase profits). The other kinds of incentives can be group incentives. This is because here, they have to work in groups.
3) WHO SHOULD BE INCLUDED?
Answer: For the incentive program, all the groups and individuals (employees, line managers and low line workers) should be included.
4) WHAT SHOULD BE THE BASIS FOR INCENTIVE PAYMENT?
Answer: performance appraisal, manager's judgment, etc.
5) WHAT KIND OF INCENTIVES SHOULD BE INCLUDED?
Answer: The various incentives that should be included here are gain sharing and profit sharing incentives. The other incentives can be like cash rewards, percentage increase in base pay, and other non-cash prizes.
EXERCISE 11.1
1) WHAT WERE THE KEY VARIABLES YOU CONSIDER IN YOUR SELECTION OF AN INDIVIDUAL OR GROUP BASED PFP SYSTEM?
Answer: The various variables that should be considered are as follows:
a)workers values outcomes(money, prizes) b) Outcome is valued relative to other rewards. c) Desired performance must be measurable. d) Workers must be able to control rate of output or quality. e) Workers must be capable of increasing output or quality. f) Workers must believe that capability to increase exists. g) Workers must believe that increased output will result in receiving a reward. h)
Answer: looking at the current scenario, incentive program is very appropriate. This is because, it help the employer to identify the various factors like motivation, skills, recognition, etc. for an employee. Incentive program can also be used to counter failure in the organizations i.e. failure in meeting targets, poor behavior, or performance
2) IF SO, SHOULD THERE BE ONE, TWO OR SEVERAL PLANS?
Answer: There should be several incentives programs like point program, employee incentives (which can be used to increase employee moral), sales incentives (which can be used to drive sales and reduce costs and increase profits). The other kinds of incentives can be group incentives. This is because here, they have to work in groups.
3) WHO SHOULD BE INCLUDED?
Answer: For the incentive program, all the groups and individuals (employees, line managers and low line workers) should be included.
4) WHAT SHOULD BE THE BASIS FOR INCENTIVE PAYMENT?
Answer: performance appraisal, manager's judgment, etc.
5) WHAT KIND OF INCENTIVES SHOULD BE INCLUDED?
Answer: The various incentives that should be included here are gain sharing and profit sharing incentives. The other incentives can be like cash rewards, percentage increase in base pay, and other non-cash prizes.
EXERCISE 11.1
1) WHAT WERE THE KEY VARIABLES YOU CONSIDER IN YOUR SELECTION OF AN INDIVIDUAL OR GROUP BASED PFP SYSTEM?
Answer: The various variables that should be considered are as follows:
a)workers values outcomes(money, prizes) b) Outcome is valued relative to other rewards. c) Desired performance must be measurable. d) Workers must be able to control rate of output or quality. e) Workers must be capable of increasing output or quality. f) Workers must believe that capability to increase exists. g) Workers must believe that increased output will result in receiving a reward. h)