I WIL UI executives Pack *Tech Ind Increase, Work (ME ladimCor 2. Frank Ko over sky-high executive paychecks. That depends on who you ask. For most, it seems unreasonable that a boss would make more than 1,000 times the pay of the average worker. However, if you ask Ford workers who have seen Mulally steer Ford back from the edge of bankruptcy, they proba- bly would not complain too much. If you asked Ford's shareholders, it would be hard for them to overlook the fact that Ford shares have gone from $1.56 when Mulally first took over to $14 a share. If you ask Ford dealers, they may be too busy selling one of the stron- gest lineups of cars around to answer. Million Pay Package."CNBC. (March 8, 2011). Twenty- Electric's Books G 3. Patricia Rewards and Ben 4. Kerry C (2011). 5. James C Humar Effect emy of 6. Jean M Case Study 2 Team-Based Incentives: Not Your Usual Office Done-Deal Paper Inc. operates throughout central reps anyway. Bailey agreed with Conner and pointed Pennsylvania with offices in Scranton, Harrisburg, out that teamwork can also improve morale and syn- and Altoona. Providing paper and paper needs to ergy. Based on these assessments, Conner organized most of Central Pennsylvania, Done-Deal is one of his twenty sales reps into four teams of five reps. the top two competitors in the area. Sales teams would pool their commissions regard- In January 2014, Conner Carell, office manager less of who initiated and worked on the sale. After the of one of the branch offices for Done-Deal somehow first year of this team-based incentive program, sales convinced company president and CEO Bailey Zucker commissions across the four groups varied dramati- that they needed to change the way their sales repre cally. For instance, the highest paid employees in a sentatives were incentivized. He argued, "putting our team made, on average, $50,000 more than the lowest sales reps into teams will not only increase coopera paid team members. tion, but it will increase sales ... right now there are too many sales being lost that could have been won During August 2012, Conner sent to all 20 sales through a team effort" Most of the time, sales made with teams and specifically, the team-based incentive reps a survey requesting feedback on the satisfaction to clients required multiple interactions by multiple rewards program. While survey results were generally Talent 7. Antho erator Turn no. 3: 8. John Retai 2004 Perfc Volu 95,1 9. En Rot ages no larger than a certain percentage of the pay of hourly workers? Explain. 3. Will the Dodd-Frank Wall Street Reform and Consumer Protection Act giving shareholders the right to yote on executive pay influence the size of these packages in the future? Explain. Source: Adapted from Phil LeBeau, "Mulally and BI Ford Collect 500 Ctrl 7 Chapter 10 Pay-for-Performance: Incentive Rewards 415 team members did not buy into the team con- cept and were simply free ridingbenefiting from the efforts of higher performing reps. 2. There was a general feeling that some teams were assigned difficult regions that prevented them from achieving higher sales. 3. Teams did not always display the motivation and synergy expected, since bickering was preva- lent between stars and their lesser performing peers. Average performers complained that star reps made them look bad. 4. At least a third of the sales staff felt the incentive rewards program was unfair and asked for a return to individual sales incentives.70 Questions 1. Do results from the survey illustrate typical com- plaints about teams and specifically about team incentive rewards? Explain. 2. If appropriate, what changes would you recom- mend to improve the incentive reward program? Be specific 3. Would management have benefited from employee involvement in the initial design and implementation of the program? Explain. positive, not everyone was happy in the office. Prob. kennis could be grouped into the following categories: 1. Some sales representatives believed that various Pay-for-Performance: Incentive Rewards 415 ob- es: Dus on- ng re m 4. At least a third of the sales staff felt the incentive rewards program was unfair and asked for a return to individual sales incentives.70 Questions 1. Do results from the survey illustrate typical com- plaints about teams and specifically about team incentive rewards? Explain. 2. If appropriate, what changes would you recom- mend to improve the incentive reward program? Be specific. 3. Would management have benefited from employee involvement in the initial design and implementation of the program? Explain. d