Duckworth Industries

Better Essays
Topics: Profit
The following is a case study analysis of Duckworth Industries, in particular the company?s incentive compensation programs:
1 & 2) What are the different incentive compensation plan options covered in the case and what problems does each plan solve?
Mr. Duckworth believed in the power of incentive to guide management action. In order to better align the interest of the management with the shareholders, Mr. Duckworth implemented a variety of new incentive compensation programs:
The first incentive program implemented addressed tardiness and attendance. Basically, under this plan an attendance bonus ($0.60/hour) would be awarded to any plant-level employee who was never more than two minutes tardy for work each pay-period.
To ensure that quality became part of Duckworth Industries culture, a quality incentive program was implemented. Under this incentive program plant level employees and shift supervisors could earn up to an additional $100/month for meeting promised shipment dates and reducing the number of customer complaints. This quality incentive plan also helped foster an environment of teamwork between plant employees and their respective shift supervisors.
The next incentive plan implemented was a profit sharing plan (open to all employees). Mr. Duckworth knew that a profit-sharing plan would help bring groups of employees to work together toward a common goal (the success/benefit of the company). As part of this incentive plan a profit sharing pool was created which was equal to 15% of profits. At the end of the year the pool was then divided up given to employees pro-rata, based upon their individual wages. While some believe that a disadvantage of a profit sharing plan is that it focuses only on the goal of profitability, which may be at the expense of quality, Mr. Duckworth?s previous incentive plan had already addressed this issue (Compensation, 1999).
As an additional incentive, individual incentive programs were offered to



References: Compensation: Incentive Plans: Profit Sharing. HR Guide of the web. Retrieved January 20, 2006 from http://www.hr-guide.com/data/G444.htm Stewart, B. (2005). What is EVA? Retrieved January 20, 2006, from http://www.sternstewart.com/evaabout/whatis.php University of Phoenix e-Reource. Duckworth Industries, Inc. https://mycampus.phoenix.edu/secure/resource/resource/asp

You May Also Find These Documents Helpful

  • Good Essays

    Archie Duckworth is a man of countless accomplishments, but without the union many of those accomplishments would not have existed. Archie was born and raised in Angus, Ontario, a small community in Essa township located outside of Barrie, Ontario. He grew up in a generation where school was not a priority to parents, or even teachers. Sadly because of this, Archie graduated high school with hardly any ability to read or write. His teacher told him he would work in a factory for the rest of his…

    • 906 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    After reading the required chapters and watching Angela Duckworth these three following tips will help me to produce a great narrative essay. Developing a story that looks into my life for inspiration. By doing this I will be able to write in detail about a moment in my life, and its effects on me. Secondly sticking with my story and staying motivated throughout writing my essay. This will help me to be sure that I write a strong paper and make necessary sacrifices to complete my tasks on time. Lastly…

    • 143 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    In “Showing Up” by Angela Duckworth she investigates the high dropout rate that occurs in the United States Military Academy called West Point. This is an academy where on the most athletic and smart people can attend. They undergo an intensive training called the beast and this is where the most students start to drop out. At first Duckworth believes that in order to succeed in this rigorous training you had to have the knowledge to do it, but in the end she finds out that knowledge is not the driving…

    • 463 Words
    • 2 Pages
    Good Essays
  • Good Essays

    the formula to success. Angela Duckworth conducted a study on GRIT and related achievements. I see GRIT in my mother and I. My mother and I share three traits that array GRIT, we work to our full potential to receive the best outcome, dedication, and self-management. My mother and I are from two different generations; however, we both array one trait called GRIT. Working to your full potential to receive the best outcome is one of the traits of Grit Angela Duckworth conducted. The study was conducted…

    • 986 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Angela Lee Duckworth is a psychologist who studies the concepts of self-control and grit, at the University of Pennsylvania, in the attempt to predict academic as well as professional success. This profession and back group gives her ample ground to speak on success and grit in students. In her T.E.D. Talk Duckworth claims that success has little to do with intelligence and more to do with perseverance. Student success does not come from a high IQ and work success does not come from good looks; successful…

    • 101 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    The Power of Passion and Perseverance In the book Grit by Angela Duckworth, the author justifies the meaning of grit through the perspective of others. Grit is a trait that isn’t inherited but can be improved by the two elements it is mostly made up of, passion and perseverance. These traits are key for an individual to be successful. Passion includes having a consistent goal over an extended amount of time and perseverance is to overcome a failure by finishing what was initially started. The people…

    • 343 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The article written by Angela Duckworth titled “Why Millennials Struggle for Success” is about the scientific facts and reasoning behind why this new wave of millennials are so counter-productive and lazy. Firstly, she writes an introduction that informs the reader what grit is. Grit in its simplest form is just a measure of how much determination you have. Secondly, she writes that potentially the reason millennials lack so much grit is because our culture devalues work ethic. She writes that “back…

    • 344 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Industry

    • 29865 Words
    • 120 Pages

    EFFECTIVE UNIVERSITY-INDUSTRY PARTNERSHIPS The Experience of China, India, Japan, Philippines, the Republic of Korea, Singapore and Thailand WORLD INTELLECTUAL PROPERTY O R G A N I Z AT I O N THE PRESENT STUDY* IS BASED ON RESEARCH** CONDUCTED BY A GROUP OF EXPERTS UNDER THE COORDINATION OF: Mr. Risaburo Nezu, Senior Executive Fellow, Economic Research Center, Fujitsu Research Institute, Japan WITH THE PARTICIPATION OF: Chou Siaw Kiang, Vice-Dean, External and Industry Relations, Faculty of…

    • 29865 Words
    • 120 Pages
    Powerful Essays
  • Satisfactory Essays

    Industries

    • 418 Words
    • 2 Pages

    Company Number Code Industry Rationale 6 A A Airline Airlines are highly leveraged and with assets majority invested in PPE 9 B B Bank It has no inventories. It ha s very high Accounts payable for customers demand deposits and slightly high other current liabilities for other types of deposits. Also, it has a very high amount of receivables for loans made to customers. 8 C C Brewery It has a very long inventory turnover as a result of aging of its brews. 3…

    • 418 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Industry Analysis of the Airline Industry An Industry in which I have a potential future interest for an entrepreneurial venture is the ever changing airline industry. Although facing tough numbers after the 9/11 attacks, I have always held an interest for this industry. There are several basic economic characteristics for this industry. There are many opportunities, there are also many threats. The airline industry was heavily regulated by the Civil Aeronautics Board (CAB) for close to…

    • 435 Words
    • 2 Pages
    Good Essays