You are the Compensation Manager for a large company that manufactures bicycles. The Operations Department of the firm is responsible for manufacturing the bikes, which is done in an assembly-line fashion. The process is quite man-power intensive.
You have been tasked to develop a benefits plan for all employees, which appeals most to assembly-line workers, since they comprise the highest percentage of employees. The plan shall perform three functions:
- Appeal to the assembly-line workers
- Meet the tenets of the core values
- Serve to reduce high turnover in assembly-line worker ranks
Benefit Plans
You are the Compensation Manager for a large company that manufactures bicycles. The Operations Department of the firm is responsible for manufacturing the bikes, which is done in an assembly-line fashion. The process is quite man-power intensive. The operation makes use of 22 different assembly lines, each of which is able to produce one bicycle every sixteen minutes. Each line requires eight workers to fully staff the line. The lines run in two shifts and hence, the nearly four hundred assembly line workers comprise the vast majority of employees of the organization, there being only 21 employees in other areas.
Your company embraces the following core values:
- We are committed to providing bicycles of consistently high quality for the lowest price.
- We will always deal ethically with stakeholders.
- We value our employees and strive to include career-oriented persons in our staff.
- We are a family-oriented organization and will work with our employees to resolve family issues promptly.
You have been tasked to develop a benefits plan for all employees, which appeals most to assembly-line workers since they comprise the highest percentage of employees. The plan shall perform three functions:
- Appeal to the assembly-line workers
- Meet the tenets of the core values
- Serve to reduce high turnover in assembly-line worker ranks
Assembly-line workers are the most populous of the operation by far. They are 60% male and 40% female. Their average age is 27 years. Their average education level is one year of college. 40% of the males are married. 47 % of the males support children. 60% of the females are married and 65 percent support children.
Your assignment is to design the plan. Explain the rationale for your design. Be specific. Your assignment should not require more than two pages.
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A pay-for-performance plan is an approach through which human resource managers compensate employees proportional to the quality and quantity of work output (Milkovich, Newman, &Gehart, 2013). As a human resource of a giant bicycle manufacturer, I would set a minimum of the number of bicycles that the assembly-line workers should deliver each day. To appeal to them to attain the minimum quantity, I would offer a basic salary for the employees. To meet the core values of the organization, I would set both the quantity as well as quality expectations. This would avoid any rushed effort that may jeopardize the quality that is core to the company’s strategy. The next step would be improving performance by sharing 10% of the profit for each extra bicycle that the assembly-line employees produce above the minimum requirement. The principle purpose of this stage would be to motivate the employees to work faster, and produce more bicycle as this would translate to higher compensation.
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