Additional Case 11.1
The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm's team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced.
-Refer to Additional Case 11.1.Sussex executives have decided to change the firm's pay-for-performance plan to one that is individual-based.Which of the following best supports this decision?
A) The organizational structure at Sussex has many hierarchical levels.
B) Most positions at Sussex require autonomy and very little cooperation.
C) Most Sussex employees are intrinsically motivated and committed to their work.
D) Consumer demand for products and services offered by Sussex is relatively stable.

Question

Quizplus · Accepted Answer

The increase in interpersonal conflicts and complaints about free riding team members suggests that the current team-based incentive plan is not working. Changing to an individual-based plan may alleviate these issues, especially if most positions at Sussex require autonomy and very little cooperation. A hierarchy in the organizational structure would not be a deciding factor in this case, and consumer demand stability does not relate to incentive plans. The intrinsic motivation of Sussex employees is not clear from the information given and would not be a determining factor either way.

Additional Case 11.1 the HR Department at Sussex Enterprises Has Been Asked to Been