Global Power Tools has now implemented a standardized pay system to ensure that

Question

Global Power Tools has now implemented a standardized pay system to ensure that females and males receive equal pay for equal work. However, the company is still being hurt by low-production, high turnover, higher safety violations, and low-morale, particularly amongst the hourly, nonexempt employees who work on the assembly lines. The CEO has asked the HR Department to develop an incentive plan for these assembly line employees in an effort to turn things around. What type of incentive plan would you recommend? Why? What are the pros and cons of this type of incentive plan? Responses should be no more than one page.

Explanation / Answer

Assemble line employees can be offered extra pay for every hour they work beyond their contract hours. They can be given incentives in the form of gifts or privileges and can be encouraged to give their best. When we give the incentives based on the work they do they will get encouraged and will show interest in the work . This helps in improving the production of the company which automatically makes other problems smaller. But the problem will arise when all the employees become competitive and start fighting with each other for the incentives. Thi sdisturbs the work environment of the organisation.

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