Chapter 6 – Critical Thinking Questions (15 points) 1. As a consultant, you have

Question

Chapter 6 – Critical Thinking Questions (15 points)

1. As a consultant, you have been asked to recommend either a gainsharing plan or a profit-sharing plan for employees who work in the four regional distribution and warehousing facilities of a large retail organization. Which reward system would you recommend? Fully explain your answer.

2. Waco Tire Corporation redesigned its production facilities around a team-based system. However, the company president believes that employees will not be motivated unless they receive incentives based on their individual performance. Give three reasons why Waco Tire should introduce team-based rather than individual rewards in this setting.

3. Describe a time when you practiced self-leadership to perform a task successfully. With reference to each step in the self-leadership process, describe what you did to achieve this success.

Explanation / Answer

1. I would recommend the Gain sharing plan

Reason: In a profit sharing plan, say the company gets a profit of 50%. Out of that 2% per employee is given. Even if employee A who made his regional distribution achieve 80% profit gets this incentive and employee B whose reg dist achieved 25% profit gets the same incentive.

So for this to be fair, in gain sharing plan, employees get 5% of the profit achieved in their area. Even if the company performs in a bad way, if their unit has achieved well, they will get their bonuses well according to their performance and vice-versa.

2. Team based systen is better than individual rewards in the production facilities because:

a) to get better production for his individual work, the employee can focus more on unethical means to increase his individual profit

b) In such cases, the employees only focus on increasing their profit which even leads to them hampering other's success

c) In a team role, all the production parts are well taken care of with contribtuions by all

3. A new banking insurance scheme had to be communicated to the people with good nominations. There were pending loans to be done in the system already. So I told the other employees to focus on them.

a) I designed a strategy to execute this plan. Text messages, emails were sent to all eligible customers about the insurance scheme with best plans (designed by me keeping in mind age groups and personal choices)

b) Next I took out the list of customers of each area and along with addressing loan customers, I took ACTION here, even went to people eligible explaining benefits of this insurance

c) I followed this process for a week, taking enquires on mobile side by side , clearing doubts.

d) At start of next week I had completed Branch loan target and also surpassed insurance target by 25%

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