based on the case study below, generate two alternatives

Alliston Instruments is a manufacturer of medical instruments based in southern Ontario. The manufacturing process involves two stages: workers produce components in batches using different machines, and then other workers assemble the components to create the finished products. The CEO believes that the company's $2015$ financial loss is partly due to production issues. The number of defective units reached an all$-$time high, and there was also a high rate of raw material wastage. Meanwhile, labor costs increased, even though total sales and production decreased. The CEO also mentioned that the company faced increased competition from Asian firms, leading to a decline in sales. In response, the company added new products to its line, but these incurred higher production costs and required extensive employee training. The relationship between supervisors and workers, as well as the union$-$management relations, have become strained. Despite these challenges, the employee turnover rate at Alliston is low due to the company's above$-$average pay and benefits package, as well as limited alternative employment opportunities in the area.

In late $2014,$ in an effort to increase efficiency, the firm persuaded the union to accept an incentive system in which employees would receive, in addition to their hourly wages, a bonus based on individual output, rather than an increase in base pay for $2015.$ A standard per$-$hour production rate for each item or assembly operation was established, based on estimated $2014$ production levels. $($However$,$ because the firm had never kept detailed records, these standards were simply based on the estimates of supervisors.$)$

Under the new system, if production per hour for a particular item exceeds $2014$ levels, the employee will receive a fixed sum for each piece produced over that level, in addition to the normal hourly pay. However, employees will not receive a bonus for items that are not of satisfactory quality, and supervisors are expected to deduct these from the employee totals. There are no set standards for quality, and each supervisor seems to set different standards.

There appear to be several issues with this new pay system. Workers complain that the production standards for some tasks are set too high, making it impossible to earn a bonus on these items. Consequently, employees try to avoid these jobs, leading to poor productivity. On the other hand, there are some jobs that everybody wants to do because substantial bonuses can be earned. This results in a dramatic increase in productivity for these jobs. However, the overall units produced per employee have not significantly changed, while substantial sums are being paid out in bonuses.

In the past year, ten production workers have retired or quit and not been replaced due to a drop in sales. However, this reduction in the workforce has been offset partly by the need to hire two additional supervisors to handle the increased need for supervision, inspection, and administration of the bonus system, along with one additional full$-$time clerical person in the payroll department to handle the calculations for the new bonus system.

Supervisors have bitterly complained about the new system, citing additional pressure and increased conflict with employees. They find that employees don$$t care about quality as long as output meets minimum standards, and they also don't care about the high wastage of raw materials. Supervisors have to supervise more closely to deal with these problems and try to keep quality and productivity up on the $$bad$$ jobs.

Moreover, supervisors are now making less money than some of the workers since they are not eligible for the bonus system. The fact that none of the non$-$union employees received any pay increase last year has not helped their morale. During the year, three experienced supervisors have quit, whereas the firm had never had more than one or two supervisors quit in a single year before.

Although the union is generally opposed to individual performance pay plans, it had accepted this one in return for a clause in the collective agreement ensuring job security for the current unionized workforce. Any workforce reductions occurring from greater efficiency will have to be achieved through attrition. Management had agreed to this condition because they did not expect to have to lay off employees. They had expected the new bonus system to reduce unit costs of production so that Alliston could lower its prices and win back the business that had been lost.

It hasn$$t worked out that way. Financial data for the last four years are shown below. They indicate that sales peaked two years ago at $$31$ million and have since fallen to $$24$ million. Customers are complaining about product price and quality. However, the company cannot afford to reduce prices because unit costs are so high. It is clear to that something needs to be done, quickly, but it is unclear