Based on the case study, answer the following question:1. Does the pay-for-performance plan seem like a good idea? Provide 3 reasons why or whynot.2. What advice would you give Regina and Sandy as they consider their decision? Provide 3advice.3. Assuming the new pay plan is eventually accepted, how would you address the fact that inthe new performance appraisal system, employees’ input affects their peers’ pay Inserting the Team Concept into Compensation or NotIn his new position at Hathaway Manufacturing, one of the first things Sandy Caldwellwanted to do was improve productivity through teamwork at every level of the firm. As the newhuman resource manager for this plant, Sandy set out to change the culture to accommodate theteam-based approach he had become so enthusiastic about in his most recent position.Sandy started by installing the concept of team management at the highest level, tooversee the operations of the entire plant. The new management team consisted ofmanufacturing, distribution, planning, technical, and human resource plant managers. Togetherthey developed a new vision for the 500-employee facility, which they expressed in the simplephrase "Excellence Together." They drafted a new mission statement for the firm that focused onbecoming customer driven and team based, and that called upon employees to raise their level ofcommitment and begin acting as "owners" of the firm.The next step was to convey the team message to employees throughout the company.The communication process went surprisingly well, and Sandy was happy to see his idea of a"workforce of owners" begin to take shape. Teams trained together, developed production planstogether, and embraced the technique of 360-degree feedback, in which an employee'sperformance appraisal is obtained from supervisors, subordinates, peers, and internal or externalcustomers. Performance and morale improved, and productivity began to tick upward. Thecompany even sponsored occasional celebrations to reward team achievements, and the teamstructure seemed firmly in place.Sandy decided to change one more thing. Hathaway's longstanding policy had been togive all employees the same annual pay increase. But Sandy felt that in the new teamenvironment, outstanding performance should be the criterion for pay raises. After consulting withCEO Regina Cioffi, Sandy sent a memo to all employees announcing the change to team-basedpay for performance.The reaction was immediate and 100% negative. None of the employees was happy withthe change, and among their complaints, two stood out. First, because the 360-degree feedbacksystem made everyone responsible in part for someone else's performance appraisal, no onewas comfortable with the idea that pay raises might also be linked to peer input. Second, therewas a widespread perception that the way the change was decided upon, and the way it wasannounced, put the firm's commitment to team effort in doubt. Simply put, employees felt left outof the decision process.Sandy and Regina arranged a meeting for early the next morning. Sitting in her office,they began a painful debate.

In the case study of Hathaway Manufacturing, Sandy Caldwell, the new human resource manager, seeks…

Based on the case study, answer the following question: 1. Does the pay-for-performance plan seem like a good idea? Provide 3 reasons why or why not. 2. What advice would you give Regina and Sandy as they consider their decision? Provide 3 advice. 3. Assuming the new pay plan is eventually accepted, how would you address the fact that in the new performance appraisal system, employees’ input affects their peers’ pay

Based on the case study, answer the following question: 1. Does the pay-for-performance plan seem like a good idea? Provide 3 reasons why or why not. 2. What advice would you give Regina and Sandy as they consider their decision? Provide 3 advice. 3. Assuming the new pay plan is eventually accepted, how would you address the fact that in the new performance appraisal system, employees’ input affects their peers’ pay

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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