Chapter 10 Case 2
Team-Based Incentives: Not Your Usual Office
Wilfredo Gonzalez
University of the Incarnate Word
Abstract
Done-Deal Paper, Inc. operates throughout central Pennsylvania with offices in Scranton, Harrisburg, and Altoona. Providing paper and paper needs to most of Central Pennsylvania, Done-Deal is one of the top two competitors in the area. In January 2012 an office manager, Michael Carell, convinced the CEO, Jerry Zucker, to change incentives for sales representatives. There were 20 sales representatives placed into four teams of five. Carell believed this would increase cooperation and sales. Zucker believed that it would improve moral and synergy.
Individual teams pool their commissions. Sales commissions varied dramatically across the four groups. Highest paid employees on the teams made $500,000 more than lowest paid members. Carell sent out a survey in August of 2012 to the 20 employees and they responded as follows: Some team members complained that others did not buy into the team concept and were "free riding" (Snell & Bohlander, 2013, p. 470). Some felt their team 's goals were hindered by being assigned difficult regions. There was bickering and no synergy. Felt the incentive rewards program was unfair.
Team-Based Incentives: Not Your Usual Office
Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards? Explain. The survey results indicate typical complaints about teams and team incentive rewards. The 1st point of the survey result indicates free rider effect -one individual puts in less effort than others but shares equally in team rewards. They generally do not foster team spirit.
The 2nd and 3rd points reflect inter group social problems - pressure to limit performance. Because the super performers may make the average performers look bad. So in spite of showing team synergy and motivation, the average performers involve in bickering or office politics to safe
Wilfredo Gonzalez
University of the Incarnate Word
Abstract
Done-Deal Paper, Inc. operates throughout central Pennsylvania with offices in Scranton, Harrisburg, and Altoona. Providing paper and paper needs to most of Central Pennsylvania, Done-Deal is one of the top two competitors in the area. In January 2012 an office manager, Michael Carell, convinced the CEO, Jerry Zucker, to change incentives for sales representatives. There were 20 sales representatives placed into four teams of five. Carell believed this would increase cooperation and sales. Zucker believed that it would improve moral and synergy.
Individual teams pool their commissions. Sales commissions varied dramatically across the four groups. Highest paid employees on the teams made $500,000 more than lowest paid members. Carell sent out a survey in August of 2012 to the 20 employees and they responded as follows: Some team members complained that others did not buy into the team concept and were "free riding" (Snell & Bohlander, 2013, p. 470). Some felt their team 's goals were hindered by being assigned difficult regions. There was bickering and no synergy. Felt the incentive rewards program was unfair.
Team-Based Incentives: Not Your Usual Office
Do results from the survey illustrate typical complaints about teams and specifically about team incentive rewards? Explain. The survey results indicate typical complaints about teams and team incentive rewards. The 1st point of the survey result indicates free rider effect -one individual puts in less effort than others but shares equally in team rewards. They generally do not foster team spirit.
The 2nd and 3rd points reflect inter group social problems - pressure to limit performance. Because the super performers may make the average performers look bad. So in spite of showing team synergy and motivation, the average performers involve in bickering or office politics to safe
References: Bohlander, G., & Snell, S. (2013). Managing human resources (16th Ed.). Mason, OH: Thomson/South-Western. Ray, L. (2013, August 10). The Advantages of Team-Based Incentive Pay Plans. Retrieved from http://www.ehow.com/info_12305445_advantages-teambased-incentive-pay- plans.html.