The organization was having considerable difficulty completing its new high-speed workstations. Speed to market is critically important in the high-technology arena, and senior management made completion of the workstations a high priority. Local management wanted to complete the project early, with high quality, and with all of the standard support services ready and trained. They attempted to motivate employees to work more efficiently and effectively by implementing a pay for performance program.

Managers and engineers within the Workstations group would receive cash bonuses of approximately 5% of their salary if the project was completed by the target date. Additionally, because of the importance of their decisions in ensuring on-time completion, managers were offered a stock grant equal to 10% of their salary for on-time completion. The stock awards were to be given out six months after the completion of the project to ensure the quality of product and customer service. The program was intended to motivate effective completion of the workstations project; there was no intent to continue the program into the future.

Based on this information, what kind of goal/objective is described?

How likely is it that the new performance pay package chosen for the San Diego self-managed teams will lead to the satisfaction of this goal/objective?

How likely is it that the performance pay elements chosen by the Workstations group will lead to the satisfaction of this goal/objective?