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Alliston Instruments

In: Business and Management

Submitted By nitro91
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Alliston Instruments

The new pay system at Alliston Instruments isn’t working because the production standards set in place for employees to earn bonuses based on individual output on some tasks are set too high and there is also no way to compare the per-hour production rate for each item or assembly operation from 2012 to the production rate of 2013 for employees to receive bonuses for each piece produced because detailed records were never kept. The new system also doesn’t favor supervisors because they make less money than some of the workers and it creates increasing conflict with employees, as they don’t care about the quality of the products the produce as long as the output meets minimum standards. The individual production bonus system could work if some changes are made to the system to make it better. One such way would be to keep detail records of the per-hour production rate for each item to be able to compare them to that of the following year so that the bonuses can be given out effectively. Another way would be to set a standard of quality that all employees can follow to make sure all items produced are done effectively and there is less waste of raw materials. The final way would be to give bonuses to the supervisors also for the amount of workers they supervise that surpasses the past years levels. I don’t believe that the individual performance pay is suitable for this company because it brings about conflict between the workers and the supervisors and the workers don’t want to work on the hard production jobs because they find it hard to earn their bonuses on those jobs. If management insists on some type of individual performance pay system, I would recommend a pay system that doesn’t reward employees based on items produced only but on each items produced that meets the high standard of quality that has been set by the...

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