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.In addition to rewarding high performers,Sussex executives want to gain the maximum tax advantage,increase employee commitment,and maximize financial flexibility.Which pay-for-performance plan would be most appropriate for Sussex?
A) Individual-based
B) Corporate-wide
C) Plantwide
D) Team-based

Question

Quizplus · Accepted Answer

Based on the stated goals of gaining the maximum tax advantage, increasing employee commitment, and maximizing financial flexibility, a corporate-wide pay-for-performance plan would be most appropriate. This plan allows for all employees throughout the organization to be rewarded based on overall company performance, rather than solely focusing on individual or team performance. This approach can create a sense of unity and shared accountability among employees, potentially reducing interpersonal conflicts and complaints about free-riding team members. Additionally, a corporate-wide plan allows for greater financial flexibility in allocating rewards to employees, as it is not tied to specific teams or departments.

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