with set standards, reducing the attractiveness of a standard rating scale or a behaviourally anchored rating scale. It is also unlikely that these low-level employees would be rated with a management by objective format or an essay format. Given the relatively low-level position, it is unlikely that the company developed an adjective checklist format. The ranking method would have supervisors “rank” each employee in terms of their overall value to the organization. However, if the low level jobs do have prescribed routines, then they are ideal for behaviourally anchored rating scales. If the jobs have an identifiable way of behaving, the identification of behavioural examples that both guide performance and permit evaluation of effectiveness may be ideal. 4. Employees in your department have formed semi-autonomous work teams (they determine their own production schedule and individual work assignments). Individual performance is assessed using four performance dimensions: quantity of work, quality of work, interpersonal skills, and teamwork. Should the supervisor have a role in the rating process? What role, if any, should other members of the work team have in the assessment process? The supervisor may be the best judge of both quantity of work and quality of work. Certainly, team members should be involved in the process, and may have a unique perspective on interpersonal and teamwork skills. EXPERIENTIAL EXERCISES 1. Roycroft Industries makes CD cases that are particularly well received on the international market. Because of currency fluctuations, the profits Roycroft generates vary widely from year to year. Jim McVeigh, who works for Roycroft, is in charge of a large product development group where the emphasis is on flexible performance, creativity, and “doing whatever it takes to get the job
done.” What kind of reward system would you recommend for this group of employees? In particular, should there be a large incentive component? Should rewards focus mostly on money, or should Roycroft work hard to incorporate the other 12 rewards noted in this chapter? Exhibit 10.1 gives some insight into the answer for this question. Roycroft faces an uncertain and highly variable profit picture. Employees in the product development department face variable tasks demanding flexibility and willingness to change. All these conditions suggest the compensation system should have a small or no incentive component (because of the low control employees have over profits) and a broad-based reward package. High empowerment, stable employment, and broad developmental opportunities should help build commitment of these employees and increase willingness to try new ways of doing their job. 2. A father decides to put his two sons to work in landscaping. The business involves going to a customer’s home and providing landscaping services (cut grass, edge sidewalk, pull weeds in flower beds, prune bushes and trees, rake leaves). Rather than paying a flat wage, the father decides to pay an incentive according to the following schedule (average across all lawns). At the end of the
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- Fall '17