Diagnostic Products Corporation Essay

Decent Essays
Case --- Diagnostic Products Corporation
Sha Wu
1) Evaluate the design and the implementation of the performance bonus program at DPC. What changes would you suggest, if any?
In this case, the FSE (field service engineers) is an important part of the whole corporation and also the system. The system is established to influence the performance of the FSEs to a desirable way and keep their customers satisfied. Therefore, the company designed a six areas method for the performance bonus program. Performance area | Evaluation way | 1.Cross-training | 10-40 Points | 2.Preventive maintenance completion | Each completion 2 Points | 3.Teamwork factor for PMs | 1%-2% of base quarterly salary+5-10 points | 4.Complete first visit |
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And the SMS even could be linked to almost any of the automated systems available. This is amazing.
What’s more, the primary goal is to make customers satisfied, however, the way to check if customers are satisfied is not direct enough, so they should find out some direct measures. The company tried to use its six area method to speculate customer satisfaction, especially based on the call back rate. This way is kind of indirect, if the company wants to know their customer satisfaction, what about just ask their customers? In the case, when the IMMULITE 2000 is going into work, the company was sometimes able to solve a problem before a customer was even aware that it existed. This way is a direct way: solve the problem before a customer aware, and then the customer would be happy about that.

2) Instead of using a results-control system could DPC use action and/or personnel/cultural controls?
If so, what would such a system look like?
If not, why not?
DPC could not use action control or personnel/cultural control instead of using a results-control system like the performance bonus system.
Action control is more specific than result control. It focuses on the process of the whole thing while result control is focuses on the result. To use action control, it is difficult for managers to distinguish good or bad behaviors, because the processes and jobs are so varied. Action control also may limit employees’ creativity
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