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In this chapter, we will learn about the implementation of incentive strategic program,
the differentiate how gains may be shared with employees under different group incentive plans,
and also differentiate between profit-sharing plans and explain the advantages and
disadvantages of these programs as an alternative to individual and group incentive systems. To
make sure of what we have been studying, we will make a discussion through the case study
about “Team-Based Incentives: Not Your Usual Office”.
With this case, we learn about a company, Done Deal Paper Inc. that provides paper and
paper needs to most of Central Pennsylvania. In 2018, Conner Carell, one of the office managers
convinced the CEO that the sales representatives need to be incentivized differently. He believes
that putting the sales representatives into teams will help the company out the most by improving
morale and synergy. The office manager split his representatives into 4 groups and realized that
the sales commissions varied dramatically. In 2016, Conner sent a survey asking for feedback
about the system and he got positive results but employees were not necessarily happy. There
were four main problems. First, employees thought some were “freeriding” because they didn’t
“buy into” the team concept. Some teams felt they were assigned difficult regions. There was
not always the motivation and synergy that was expected. Lastly, many representatives felt the
program was unfair and wanted to work in individual sales incentives. With this survey result,
we can make critical thinking about the 3 main questions below:
1. Do results from the survey illustrate typical complaints about teams and specifically
about team incentive rewards? Explain.
In this case, I think that the results from the survey really illustrated typical complaints
about the team and team incentive rewards. Since the survey is about the individual concept and
those people, high-performance employees might complain to this team incentive program.
Typical complaints with team compensation are that individuals may believe that their own
efforts contribute little to the team and there are intergroup social problems. Their problems
were about the none performing member were taking advantage of the high performing team
member. While some team members, who were given difficult regions complained about the
difficult sales, the others felt that incentives should be based upon individual performance rather
than group performance.
2. If appropriate, what changes would you recommend to improve the incentive reward
program? Be specific.
In fact, besides a paycheck from their jobs, the employees want to feel safe, secure, fair
and appreciated at work. A good employee rewards programs provide those employees with a
fair return for their efforts, motivation to maintain and improve their performance. However,
due to the case, in order to improve this incentive reward program, I would recommend on
rotation or flexible sales representatives team. Because with this design, they will not be able to
complain about being given a difficult region or low-performance team member, as well as they
have the same opportunities and time. In other hands, to cut out bickering and reduce freeriding,
they may also try switching the teams up as well so they are constantly working with different
people and trying to do their best for each group instead of being compared to the “stars” in their
group the whole time or being getting advantage from the high-performance team members.
3. Would management have benefited from employee involvement in the initial design
and implementation of the program? Explain.
As we have learned from the case, I believe that the management would have benefited
from employee involvement in the initial design and implementation of the program. As soon
as the survey and the employee involvement had occurred at the beginning of the process of the
program, they might have worked out the problems from the beginning with instead of getting
the results after implementing the teams. When there are involving with team leaders or team
supervisors, they will be known exactly with each member, how are they competencies,
commitments, willingness, and performances. If the employees voiced about being given
difficult regions or working with certain people (high or low performers), training and
motivation might have been a lot higher during the program and the representatives might have
actually been happy in the office.