Gina's Company Recently Instituted an Improshare Plan in Order to Improve

question 16

Multiple Choice

Gina's company recently instituted an Improshare plan in order to improve the timeliness of production and decrease the cost per unit of product. The organization explained to each employee that they had to now inspect and assemble 25 parts in one hour rather than just 20 parts. Gina felt this was a reasonable goal knowing that there were days where she had been able to work ahead and produce more than expected. However Gina's manager did not explain how the time savings would be translated into a dollar amount of a bonus for each employee. Therefore employees in Gina's work area were not producing at the required level, as they did not understand the impact on their wages. This is an example of not meeting which criteria of an effective incentive plan?

• A) Be attainable.
• B) Have clear standards.
• C) Be easy to understand.
• D) Link to the company's objective.
• E) Provide meaningful incentives.

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Definitions:

Stanley Milgram

An American social psychologist known for his research on obedience, demonstrating the power of authority in compelling people to go against their personal ethics.

Phillip Zimbardo

An American psychologist known for his research on social psychology, notably the Stanford prison experiment which illustrated how social situations can influence human behavior.

Solomon Asch

A psychologist best known for his research on social conformity, demonstrating how group pressure could influence an individual to conform.

Forgiveness

Ceasing to feel angry toward or seek retribution against someone who has wronged you.