Case Assignment: The Design of a PFP System for Mega Manufacturing
Overview
This exercise evaluates the feasibility of different ap- proaches to PFP given the strategic plan of the organiza- tion. As discussed in the chapter, the effectiveness of the PFP system depends on a number of factors. This exercise will give the student the opportunity to consider some of these factors in proposing an ideal PFP system.
Learning Objectives
After completing this exercise, you should be able to
1. Identify the key organizational variables that should be considered in the development and/or revision of a PFP system.
2. Understand the role and importance of other HRM activities (e.g., job analysis, performance appraisal) in the development of a PFP system.
Procedure
Part A: Individual Analysis
Step 1. Read the scenario that follows.
Step 2. You have been retained as a consultant who must report to Ellen Lennett, director of incentive program development at Mega Manufacturing corporate headquarters. You will be working with the Kanto division. You have been asked to address the five issues raised on Form 11.1.1.
Respond to each of the issues and recommend a specific program that supports both Mega's incentive policy and Kanto's situation. Your recommendation should consider at least the five points. Also, complete the Assessment Questions form. What were the key variables you considered in your selection of an individual- or group-based PFP system? What changes in organizational characteristics would seriously affect your recommendations? What circumstances would lead you to conclude that a PFP system would not be in the best interests of the organization? YOU WILL SUBMIT YOUR INDVIDUAL ANALYSIS TO THE "INDIVIDUAL ANALYSIS OF CASE 2" SUBMISSION LINK ON THE ASSIGNMENTS PAGE.
The two memos in Exhibits 11.1.1 and 11.1.2 may be relevant to the recommendations you will make. Ellen Lennett has received the notes, one from Don Walker, vice president, compensation and benefits, and the other from Bill Idrey, a compensation specialist she sent to help the Kanto personnel department.
Part B: Group Analysis
Step 1. In groups, each member should review the individual reports and take notes on the most important points. Each member also should devise his or her own strategy for identifying the best group response to make for each of the five questions presented in Form 11.1.1 plus any additional issues the group considers to be relevant. The group also should devise a list of key questions that must be answered by management before a firm position can be taken on the elements of the PFP system.
Step 2. ONE group member should be designated to submit a five-page paper listing the recommended questions and summarizing alternative recommendations.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Attachment:- Case-Analysis-Instructions.rar