Based on Figure 1, discuss TWO (2) suggestions on how the Individual Incentive Grid could be used to resolve the conflict.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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As a Remuneration Manager in No-Direction Sdn. Bhd., Mr. Harry Styles would like to
end the conflict between Marketing Manager and Sales Assistants incentive plans.
Specifically, Sales Assistants are not clear about the standard performance indicators
that have been used to evaluate their performance. In fact, most of them are not
satisfied with the calculation of the incentive rate. Mr. Harry plans to use the Individual
Incentive Grid as a basis to clarify the calculation and to address all the problems
related to the incentive plan.
Based on Figure 1, discuss TWO (2) suggestions on how the Individual Incentive Grid
could be used to resolve the conflict.
Relationship
Between
Production
Level and Pay
Pay constant
function of
production level
Method of Rate Determination
Pay varies as
function of
production level
Units of production
per time period
(1)
Straight
piecework plan
(3)
Taylor differential
piece-rate system
Merrick multiple
piece rate system
Figure 1: Individual Incentive Grid
Time period per unit
of production
(2)
Standard
hour plan
(4)
Halsey 50-50 method
Rowan plan
Gantt plan
Transcribed Image Text:As a Remuneration Manager in No-Direction Sdn. Bhd., Mr. Harry Styles would like to end the conflict between Marketing Manager and Sales Assistants incentive plans. Specifically, Sales Assistants are not clear about the standard performance indicators that have been used to evaluate their performance. In fact, most of them are not satisfied with the calculation of the incentive rate. Mr. Harry plans to use the Individual Incentive Grid as a basis to clarify the calculation and to address all the problems related to the incentive plan. Based on Figure 1, discuss TWO (2) suggestions on how the Individual Incentive Grid could be used to resolve the conflict. Relationship Between Production Level and Pay Pay constant function of production level Method of Rate Determination Pay varies as function of production level Units of production per time period (1) Straight piecework plan (3) Taylor differential piece-rate system Merrick multiple piece rate system Figure 1: Individual Incentive Grid Time period per unit of production (2) Standard hour plan (4) Halsey 50-50 method Rowan plan Gantt plan
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