228744
225178
Fauzan Usman
228722
Heikal
228634
Lisa Lioni
225022
INTRODUCTION
1. What major issues and problems concerning the design and implementation of
pay-for-performance systems does this case illustrate? Explain.
From the case that has been given before, we do not say that Pamela
Johnsons method is wrong. It was a right one, but not that accurate one. Because,
the several employees who did not get the cash bonuses think that this kind of
method was not fair. There are several ways how to success in pay-forperformance system. Firstly, Lakeside Utility Company need to meet certain
requirements. The requirements are:
a. A culture that supports pay-for-performance
b. Effective and fair supervisors
c. A rigorous performance evaluation system
d. Adequate funding
e. A system of checks and balances to ensure fairness
f. Appropriate training for supervisors and employees
g. Ongoing system evaluation
From the case, the large numbers of problems are involves in rigorous
performance evaluation system and ongoing system evaluation based on the
points above. It might be happpen because of the Pamela Johnson gave a less
transparency about performance evaluation system and ongoing system
evaluation. She assessed the employees based on average length of time needed
to restore power, results of customer satisfaction survey, and number of hours
required to complete routine installation assignments successfully. Those things
not enought to measure exactly how the employees do their performance. As I
said before, Pamela should give more transperancy about the evaluation to the
employees in order to avoid unfairness among the employees.
Another thing that Pamela Johnson has to do when she is doing pay-forperformance is the system should be evaluated regularly and modified when
necessary, this option have to be done in certain years in order to ensure that payfor-performance keep functioning properly. If the systems are functioning
properly, then:
2. Are the team-based incentives appropriate for the type of work done by
Johnsons crews?
Team-based plans are likely to be succesful
When work tasks are so intertwined that it is difficult to single out who
did what
When the firms structure facilities the implementation of the incentives
When the objective is to foster entrepreneurship in self-managed work
groups.Encourage the students to solidly base their explanations on these
circumtances. When this is done, they may deduce that team-based
REFERENCES
U.S. Merit Systems Protection Board. (2006). Designing an Effective Pay for
Performance Compensation System. Retrieved 8 December 2014, from
http://www.mspb.gov/netsearch/viewdocs.aspx?
docnumber=224104&version=224323&application=ACROBAT