Unit 4 Case Study: "Team Bonus Program"

As you read this case study, consider how, as manager reviewing this program, what would you look at to determine if the program is successful? Do you think that there is a relationship between team bonuses and productivity? What kind of support can be found for this type of program?

Brian is a manager of a local utility authority. The majority of the line workers are unionized, while management is non-unionized. The utility authority is responsible for collecting trash and recyclables. For a number of years, productivity has been decreasing. This has threatened the authority, which has been on the verge of privatization.

Line workers are divided into drivers and handlers. There is a high turnover rate. Approximately 25% of the drivers have less than one year of service and almost 50% of the handlers have less than a year of service. This statistic persists in spite of competitive salaries for the employees.

Once the route is completed and the employees return to the facility to drop their loads, the work schedule allows the employees to go home for the day. In general, this means that many employees are able to leave on average 30 to 45 minutes early each day. This is a bonus for some employees, but others are unable to complete their routes within the given time due to the type of route and the distance from the facility. Also, growth in the community has impacted the routes and raised issues about equitable treatment for all.

Brian looked at this problem with a worker-management work team and developed a program that organizes workers into teams and provides a bonus for teams that perform exemplary work. This was defined as total tonnage collected, hours to complete the tasks, and letters of commendation or lack of letters of complaint. This program requires each team be tracked daily to determine productivity. Prior to the implementation of computerized records, the data were maintained in paper format, which was difficult to manage. With the widespread use of computers, data on team performance have been maintained in a more efficient manner.

The condition of the vehicle was an issue that workers raised in this process. Newer vehicles are more efficient and give some teams a better chance of receiving a bonus. Other workers have complained about the program and its fairness, although management has opened the records to the employees.

Questions

As a manager reviewing this program, what would you look at to determine if the program is successful? Is there a relationship between team bonuses and productivity? What kind of support can be found for this type of program?