Questions:Does the pay for performance plan seem like a good idea? Why or why not?What advice would you give Regina and Sandy as they consider their decision? Sandy decided to change one more thing. Hathaway's longstanding policy had been to give all employeesthe same annual pay increase. But Sandy felt that in the new team environment, outstandingperformance should be the criterion for pay raises. After consulting with CEO Regina Cioffi, Sandy sent amemo to all employees announcing the change to team-based pay for performance.The reaction was immediate and 100% negative. None of the employees was happy with the change, andamong their complaints, two stood out. First, because the 360-degree feedback system made everyoneresponsible in part for someone else's performance evaluation, no one was comfortable with the ideathat pay raises might also be linked to peer input. Second, there was a widespread perception that theway the change was decided upon, and the way it was announced, put the firm's commitment to teameffort in doubt. Simply put, employees felt left out of the decision process.Sandy and Regina arranged a meeting for early the next morning. Sitting in her office, they began apainful debate. Should the new policy be rescinded as quickly as it was adopted, or should it be allowedto stand? In his new position at Hathaway Manufacturing, one of the first things Sandy Caldwell wanted to do wasimprove productivity through teamwork at every level of the firm. As the new human resource managerfor this plant, Sandy set out to change the culture to accommodate the team-based approach he hadbecome so enthusiastic about in his most recent position.Sandy started by installing the concept of team management at the highest level, to oversee theoperations of the entire plant. The new management team consisted of manufacturing, distribution,planning, technical, and human resource plant managers. Together they developed a new vision for the500-employee facility, which they expressed in the simple phrase “Excellence Together." They drafted anew mission statement for the firm that focused on becoming customer driven and team based, and thatcalled upon employees to raise their level of commitment and begin acting as "owners" of the firm.The next step was to convey the team message to employees throughout the company. Thecommunication process went surprisingly well, and Sandy was happy to see his idea of a "workforce ofowners" begin to take shape. Teams trained together, developed production plans together, andembraced the technique of 360-degree feedback, in which an employee's performance evaluation isobtained from supervisors, subordinates, peers, and internal or external customers. Performance andmorale improved, and productivity began to tick upward. The company even sponsored occasionalcelebrations to reward team achievements, and the team structure seemed fırmly in place.

Pay for performance : Compensation based on performances refers to such kind of payments which an…

Answered: Does the pay for performance plan seem…

Does the pay for performance plan seem like a good idea? Why or why not? What advice would you give Regina and Sandy as they consider their decision?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter10: Designing Organization Structure

Section: Chapter Questions

Problem 1ED

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