Name: Wk 3 Apply Employee Performance and Operations.docx - Required information Skip to question Garbage. Not Just the Work but the Outcomes Too In an effort
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Required informationSkip to questionGarbage... Not Just theWork but theOutcomes TooIn an effort to cut costs, Albuquerque city officials decided to stop paying their garbagecollectors for working overtime. This decision had a noticeable impact on the quality of theirperformance. This exercise is important because managers must consider how decisions aboutthe financial health of a company can impact the quality of performance among its employees.The goal of this exercise is to draw the connection between consequences and performanceoutcomes.Read the case about trash collection crews in Albuquerque getting paid foronly eight hours of work, then using the 3-step problem-solving approach,answer the questions that follow.City officials in Albuquerque, New Mexico, needed to cut costs. Among the targets theyidentified was overtime pay of trash collectors. The officials decided to pay trash collectioncrews for eight hours of work no matter how long it actually took them to finish their routes. Thehope was that the crews would work more efficiently and quickly, given that they could then gohome early and still get paid for eight hours of work.

This PM practice seemed like a success, and overtime costs dropped significantly. However,unintended consequences emerged. Crews overloaded their trucks to reduce the time they spentgoing to the dump, but strict weight limits resulted in fines when they arrived. So they drovefaster, which resulted in more tickets and accidents. Sometimes they skipped trash pickups andtruck maintenance, which generated customer complaints and more frequent vehiclebreakdowns.1Apply the 3-Step Problem Solving ApproachStep 1:Define the problem city officials wanted to fix.Step 2:Identify the potential causes of this problem. (Consider also the common reasonsrewards fail to motivate.)Step 3:Make your recommendations.Footnote1. Pfeffer, "Wean Us from Incentive Myths,"The Washington Post,March 22,2009:.What is the key problem in this mini-case?If city officials considered the elimination of overtime as a reward—

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meaning trash collectors could go home early if they finished theirwork, yet still get paid for eight hours—then, why did it fail tomotivate the desired behaviors?

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The trash collectors seemed entitledThere was a long delay between the performance and whenthe reward was providedThe reward seemed to be one-size-fits-allThe reward had a short-lived motivational impactWhat is one way city officials could have had more success inachieving their cost-cutting goals?

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