Question: Please submit Case 5 Harwood Medical Instruments here by end of day Sunday For each case, you will give a brief background on the company,
Please submit Case Harwood Medical Instruments here by end of day Sunday
For each case, you will give a brief background on the company, state the problem and your recommendations or solutions depending on the case
The case describes a company whose manager is concerned that the operating profit measure included in the companys bonus plan was too narrowly focused. He implemented a new bonus plan that reduced the weighting of importance placed on operating profit and that included more measures, including ontime deliveries, sales returns, patent applications, scrap and rework costs, and customer satisfaction.
Please answer the following questions for this case:
What was the purpose of the change?
Calculate the bonus earned by each manager for each month period and for the year
Evaluate the new plan. Is there any evidence that it produced the desired effects? What changes to the new plan would you suggest, if any?
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