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Richland Manufacturing Uses an Individual-Based Pay-For-Performance Plan for Employees

question 79

Multiple Choice

Richland Manufacturing uses an individual-based pay-for-performance plan for employees.
Manager input in the form of performance evaluations primarily determines individual employee rewards. Performance appraisals at Richland are used for multiple purposes including compensation, training, and work planning. Since implementing the plan, many managers have noticed that employees tend to play it safe by setting modest rather than challenging goals for themselves. Employees have also been avoiding important tasks, such as satisfying the needs of customers and keeping work areas neat. In addition, most employees express disbelief that pay and performance are actually linked. As a result, Richland is considering making modifications to the system.
The HR Director wants a system that will reward all employees based on the entire company's performance because he wants to increase employee commitment. The VP of Operations wants to reward specific productivity and quality improvements with a simply structured system that considers labor costs as well as other production expenses. The VP of Operations also believes that labor and management should work together to allocate the rewards.
-Refer to Additional Case 11.2.Which of the following would most likely meet the demands of managers,the HR Director,and the VP of Operations?

Definitions:

Moral Dilemma

A situation in which a difficult choice has to be made between two or more actions, each of which could violate a moral principle.

Drug Use

The consumption of legal or illegal substances that can alter the mind or body, with a spectrum of use ranging from medicinal to recreational or abusive.

Social Systems Morality

The principles and norms governing behaviors within societal institutions and structures, shaping ethical conduct.

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Moral principles that are considered universally applicable, guiding individuals in ethical decision making beyond personal or cultural specifics.