SCENARIO 4-4
Bill Leung is the HR director for Copper Inc. ,a mining firm.The business has been losing money over the past three years due to a worldwide slump in copper prices,and no end is in sight.The pressure is on to reduce labour costs.Bill has been asked to recommend an incentive pay program for miners to attempt to increase the amount of ore they extract from each site,while still meeting quality targets.Safety issues are also very important,as even minor accidents add tremendously to costs.The miners work in teams,so the plan must not upset their team interactions;however,the miners have little involvement in the company outside of their immediate jobs.

-Referring to SCENARIO 4-4,Bill must also recommend a plan for the research department staff.It is more difficult to assess researchers' performance because of the kind of work they do.Recently,a number of researchers have been laid off because of the company's losses,and so each staff member must get involved in new kinds of projects.Flexibility and communication between project team members is very important.What kind of incentive plan should Bill recommend for the research staff?

Question

SCENARIO 4-4
Bill Leung is the HR director for Copper Inc. ,a mining firm.The business has been losing money over the past three years due to a worldwide slump in copper prices,and no end is in sight.The pressure is on to reduce labour costs.Bill has been asked to recommend an incentive pay program for miners to attempt to increase the amount of ore they extract from each site,while still meeting quality targets.Safety issues are also very important,as even minor accidents add tremendously to costs.The miners work in teams,so the plan must not upset their team interactions;however,the miners have little involvement in the company outside of their immediate jobs.

-Referring to SCENARIO 4-4,Bill must also recommend a plan for the research department staff.It is more difficult to assess researchers' performance because of the kind of work they do.Recently,a number of researchers have been laid off because of the company's losses,and so each staff member must get involved in new kinds of projects.Flexibility and communication between project team members is very important.What kind of incentive plan should Bill recommend for the research staff?

Quizplus · Accepted Answer

The best incentive plan for the research staff would be gainsharing. This plan rewards employees for improving productivity and reducing costs, which aligns with the company's current goal of reducing costs. Additionally, it encourages communication and teamwork between project team members, which is important in a research and development setting. Skill-based pay, piece-rate pay, and profit-sharing plans are not as effective in this kind of work environment. ESOPs (employee stock ownership plans) are usually used for ownership transition and do not directly impact employee performance.

SCENARIO 4-4 Bill Leung Is the HR Director for Copper Inc. ,A