Starting from the Ground Up at Amica Wireless
The case describes that Amica Wireless Company initially was established in its industry with a purpose to create an organization with a strong team spirit that will encourage employees to work collaboratively to satisfy customers. Based on the experiences of these managers and a bit of research, the founders of Amica Wireless developed an integrated system of goals, feedback, and rewards that was linked to three principles: 1. Ensure fair and equitable distribution of profits.
2. Reinforce teamwork and cooperation.
3. Stimulate performance.
However, in the later implementation process, issues have arisen. The compensation system of Amica Wireless has undergone two changes, which were group- or organizational-level rewards and balanced approach that included both individual and group incentives. The former one was too dramatic for the managers to adopt, and the latter one made some people felt unfair and led some salespeople leaving the organization owing to dissatisfaction with pay. From my point of view, the problem is lacking of performance management of HRM system. At beginning of formulating the institution, they made the policy of ensuring fair and equitable distribution of profits, but the problems occurred in the subsequent implementation process. Inequity led some employees’ resignations, anyone under that system would choose to leave or change. With the gradual improvement of business management and the gradually increasing quality of managers, human resources as a special resource attracted more and more attention today. Human resources management is correspondingly taken seriously and its position gradually changed from the subordinate service job to the strategic management of human resource, and performance management is an important link of HRM in which it plays a significant role. As it is defined in textbook “performance management is the use of human resource...
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