Case Study for Usa Motors

Topics: Incentive, Absenteeism, Incentive program Pages: 4 (1353 words) Published: September 15, 2013
Cevdet KIZIL
Master of Science in Organizational Leadership Program

1- Will the incentive plan to reduce absenteeism succeed?
In my opinion, the incentive plan to reduce absenteeism will probably succeed because it brings some new implementations. For example, if a chronically absent employee exceeds the standard, then vacation, holiday and sickness/accident pay will be cut by ten percent through the next six months. Additionally, in case worker absence continues to exceed the allowable limits, then vocation, holiday and sickness pay will be cut during the next six months by the actual percentage of six days incurred by the chronic absentee. So, when an employee will miss fifteen percent of scheduled workdays through the first six months period, vacation pay for the following six month period will be decreased by ten percent. Moreover, if the employee will continue to be absent at the fifteen percent rate, then vacation pay will be reduced by fifteen percent during the next six months (Jackson, S.E. & Schuler, R, S., 2005). From my point of view, these are all important incentives and have the capacity to affect the behavior of employees seriously. However, it’s also stated in the case study that the agreement was negotiated ten years ago between the national union and USA Motors. According to my thoughts, this can cause a great deal of resistance from the employees because they will need some time to get used to the new program. It’s a well-known fact that, in any large organization, change takes time. (Bridgewater Today., 2002). Moreover, Jack Parks is trying to make incentives a small piece of the great gear which we call as the organizational culture. However, organizational culture changes very slowly. (Schauber, A.C., 2001). As a result, I believe that the incentive plan will be successful to reduce absenteeism, but some problems may occur in the beginning and initial phases. 2- How much absenteeism is really under the...

References: Sales Creators Inc. (2006). “Performance Based Incentive Plans”.
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