Narrative 9-3 Standard Motor Products Makes Aftermarket Auto Parts (For Repairs and Repairs

Narrative 9-3
Standard Motor Products makes aftermarket auto parts (for repairs and replacement) that are sold by warehouse distributors such as Carquest and NAPA (National Automotive Parts Association) and auto parts retailers,including Advance Auto Parts and Auto-Zone. The aftermarket auto parts market is incredibly competitive,and companies that don't continue to improve quickly lose market share and profits.
Right now,Standard Motor Products is struggling. Downtime-when machines aren't running-is up significantly,and no production means no revenue generation. Productivity is also down,and costs are up. Since Standard competes in an industry where the difference between a profit and a loss is three cents per hose,it can't continue to incur rising costs. The company is already losing millions per year and is closing down money-losing production facilities.
Problem one is a top-down,authoritarian culture where managers pride themselves on being tough on workers. The workforce is 50 percent unionized,with dissension between managers and workers. Problem two is that the workers dislike one another. Language difficulties separate the four main cultures present. Negative feelings were so strong that when the company introduced English language classes,almost no one attended.
With their noise and nonstop pressure to keep costs low,quality high,and production on schedule,manufacturing plants are already challenging places to work. When miscommunication and dissension are added,the recipe for poor results sure to prompt a shutdown is complete.
So,in response to this situation,management decided to implement a team-based structure at one plant. Managers gave the teams the highest level of autonomy. Consequently,the teams select their members and directly control all their tasks and how those tasks get done. To compensate employees,Standard Motor Products shares the financial value of performance gains,such as productivity,cost savings,or quality,with its workers. The company hands out cash awards each quarter,depending on how much it saves in terms of increased productivity,quality,returned products,and safety. In the first year of the program,the average annual award at this plant was $2,000 per employee.
-Refer to Narrative 9-3. What is the team-based compensation at Standard Motor Products an example of?

A) hourly wages  
B) gainsharing  
C) piecework pay  
D) retained earnings