XYZ Ltd Has Just Introduced a Performance-Based Reward System for All

question 167

Essay

XYZ Ltd. has just introduced a performance-based reward system for all production employees. The plan pays employees a team-based bonus based on the reduction of labour costs per unit in the production department. Describe three strategies to ensure that this and other performance-based reward systems are effective. Your answer should also briefly state the type of reward system used by XYZ Ltd.

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Definitions:

Language-like Skills

The abilities related to the use and understanding of complex systems of communication that resemble human language, including syntax, grammar, and the conveyance of abstract concepts.

Grammatical Rules

Guidelines in a language that dictate how words and phrases should be structured to convey clear and correct meaning.

Functional Fixedness

A mental shortcut that restricts an individual to employing an item solely in its conventional manner, obstructing innovative thinking and the ability to solve problems.

Availability Heuristic

A cognitive bias where people judge the likelihood of events based on how easily examples come to mind.