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"Inserting the Team Concept into Compensation-or Not”

"Inserting the Team Concept into Compensation-or Not”

Answer: 1
The new-pay-for-performance plan implemented by joint decision of Sandy Caldwell and Regina Cioffi created a lot of discussion and dissatisfaction at Hathaway Manufacturing. According to this new pay system, teams were to pay on the basis of their outstanding performance. There were mainly two reasons for disapproval. Firstly, the employees feel that since there is 360-degree feedback system, each one will be involved in others result. Here are the question of fairness and partiality as clear as water. Secondly, the decision about the change in pay system was decided by HR manger and CEO along without consulting the employees. So, that raises the question on the team oriented management system of the company.
Hence, the new pay-for-performance system doesn't seem good.



Answer: 2
In my point of view, Sandy and Regina had taken their decision of new pay-for-performance plan in order to enhance the team performance and their co-ordination. But they made a huge mistake by neither involving employees in decision neither making nor taking their suggestion before implementing the plan. So, firstly they need to apologize with employees and make their real intention clear and favoring employees development. Secondly, they need to ensure that there won't be any kind of unfairness regarding the feedback. They can even form strict rules and punishment for dishonest feedbacks.

Answer: 3
It is the duty of every manger to inform the employees and take their valuable advice before reaching to any decision. Especially at Hathaway manufacturing where the team orientation culture was being practiced, Sandy did a great mistake by ignoring its employees. Sandy should have communicated with employees and know their opinion and suggestions for any improvement they want in their salary plan. Then, he should have presented his proposal. It would have given him chance to explain his good intention and purpose. Even employees would have presented their doubts at that moment. If this whole situation was handled by Sandy in this way, it wouldn't have turned out so wrong.

Answer: 4
The new pay plan states that pay increment depends on performance while according to company rule; performance evaluation depends on 360-degree feedback. So, eventually one employee's pay increment depends on all others input. In my opinion, this system is very disapproving. There are a lot of chances for arguments and conflicts in the workplace. Employees would surely try to get more increment for themselves but that would depend on other's feedback. Those who would get least ranking would feel treated unfairly and would be disappointed. Even if the system is made fair enough, there would be conflict and enmity among employees. As a result, the whole company would suffer.

Reference: Dessler, G., Fundamentals of Human resource Management, Prentice Hall, 2nd (2012) edition


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