need short answers for this please.

Note: Exercise 10.3. Developing an Employee Benefits Program, and Exercise 11.1: The Design of a PFP Systems for Mega Manufacturing are cvailable online at www.me.com bernardine EXERCISE 11.2: PAY FOR PERFORMANCE AT DEE's PersonalIZED BASKETS Overview Procedure This exercise provides an opportunity for the student to Part A: Individual Analysis develop a framework for a PFP system, training for the Before class, read the background material on Dee's program, and a framework for the evaluation of the sys- Personalized Baskets presented in Exhibit 11.2.1. Answer tem. The problem is common to many organizations. As the questions on Form 11.2.1. discussed in Chapter 11, while pay for performance is the preferred method of compensation for most jobs, there are many problenas with such systems, including the appar- Part B: Group Analysis ent inability on the part of evaluators to be critical in their Step 1. Assume the role of a team of HR consultants evaluations. Many experts on PFP systems maintain that to consider the development of a PFP system. this is the major problem with most PFP systems in opera- In addition, you have been asked to develop a tion today that use ratings as the basis for measurement managerial training program to prepare managers This exercise is designed to allow the student to construct a for the new PFP system. You also have been PFP system that would minimize such problems asked to evaluate the effectiveness of the PFP system. Learning Objectives Step 2. Among the critical issues that your team should After completing this exercise, you should be able to address are those listed on Form 11.2.1. Review each consultant's responses on Form 11.2.1. 1. Consider different PFP options for different jobs. Discuss each response and prepare a plan to deal 2. Evaluate the relative advantages and disadvantages of with each. the different approaches to PFP. Step 3. Prepare a short presentation for the vice president 3. Consider the various issues related to training for that covers your team's ideas regarding the design PFP, including transfer, relapse, and cost. of the PFP system. Remember that management 4. Develop an evaluation design that can assess the will weigh heavily both your recommendations as effects of the PFP system. well as your plan for implementation. rights reserved Exhibit 11.2.1 Background Material for Dee's Personalized Baskets Nancy Harrison, HRM vice president of Dee's Personalized baskets retail for an average of $9.50). These high-volume baskets Baskets in Orlando, Florida, is disturbed by lagging productivity are produced by most of the assemblers who work around the figures and problems of product quality and high turnover. supplies of goodies that typically go into the baskets (snacks She is intrigued by the results of a recent attitude survey of her fruit, candy hotel amenities), a growing and more profitable employees. She has decided to experiment with some form of part of the business is much larger and more expensive baskets PFP system of compensation. The company's current system of that retail for an average of $9-4 with a profit margin averaging compensation pays either straight hourly rates to nomsupervisory 16 percent. The baskets are usually thematic and tailored to the personnel or straight salary to all supervisory/managerial/sales particular situation or proclivities of the recipient. This part of the personnel with a year-end bonus that is a percentage of base pay business represents about 20 percent of the business, but a goal as determined by the board. The attitude survey results indicated is to expand in this area. Design and assembly of these baskets employees believed that they would work harder if they perceived requires some artistic talent. There is a sales staff of three who a stronger te between their level of effort and their pay. Most of currently work on straight salary. the 200 employees who would be part of the new pay system Few respondents to the survey felt that they were recognized prepare individual baskets of gifts (perfumes, fancy soaps, fancy in any significant way for working harder than others. People foods, wine, etc.), which are ordered by customers for clients and most disturbed by the failure to recognize greater effort were the potential clients. same people who indicated they were more likely to seek other There are two distinct elements of the business. The largest employment. The turnover rate has increased for 3 straight years, and most reliable part of the business is partnerships with and Dee's has lost some good people. The organization has a several of the largest hotels in the area to provide high-volume performance-appraisal system, but the ratings are generally very baskets for hotel rooms usually commensurate with the start high. For the last performance appraisal perod, the average rating of a convention. The convention contracts average around of effectiveness made by the 20 Supervisors was 7.5 on a 5-point 300 baskets and have a profit margin of about 8 percent (the rating scale (with 9 representing "highly effective performance). FORM 11.2.1 1. What type(s) (if any) of PFP system(s) do you recommend for Dee's? Be as specific as possible and consider all of the jobs under analyses. What (if any) additional information would help you develop the most effective PFP system(s)? (You may take a position against the use of any PFP system but make sure you explain why you are taking this position given the circumstances of the case.) 2. Jessica Harrison, Dee's president, read an airline magazine article about gain sharing and was very impressed. She thinks it's a perfect approach for motivating the basket assemblers. How does gain sharing work, what conditions are necessary for maximum effectiveness, and what does the research say about its effects given the circumstances at Dee's? How is gain sharing different from profit-sharing? Ms. Harrison wants your research-based, "bottom- line" opinion as to whether gain sharing is (or is not) a good PFP approach for Dee's. 3. Given the level of rating leniency in the present system, Harrison also believes some form of forced ranking or forced distribution system should be installed to increase productivity? Do you agree with this position? Explain your answer. Name Group 4. What suggestions would you make to improve the recognition system for employees