Question: Now that you have created a Base Pay proposal for the Warehouse and Manufacturing Departments, it s time to look at CCC s incentive pay

Now that you have created a Base Pay proposal for the Warehouse and Manufacturing Departments, its time to look at CCCs incentive pay policies. CCCs president, Anthony Cooney, knows that the companys current polices are not working. He would like a system that is more closely tied to the companys corporate goals. He wants your recommendation on individual, group, or a mixture of both types of incentive plans.
In addition to the information from the Case Study provided in Week 4, including the Employee Handbook, President Cooney tells you:
Managers believe the current profit-sharing plan is too general. Employees do not understand how their individual productivity and efficiency is used to calculate their profit-sharing pay out. Consequently, it does not motivate the employees to work harder or smarter.
The existing spot bonus, which is intended to recognize individual contribution, is rarely used to reward anyone. When it has been used, it was entirely at the presidents discretion. President Cooney knows that regardless of why he gave a bonus, some see it as purely arbitrary and more of a gift rather than recognition of exemplary performance.
The employee handbook refers to pay-for-performance, but this too has turned into an imprecise method of recognition that has largely be
en left up to each manager. Your job value analysis (Week 4 & 6) exposed how this may have contributed to internal inconsistency.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!