Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Performance Pay at Safelight Auto Glass - Case Study Example

Comments (0) Cite this document
Performance Pay at Safelite Auto Glass Table of Contents Question One 3 Problem Identification by PPP Plan 3 Question Two 4 Pros and Cons of Switching From Wage Rates to Piece Rates 4 Question Three 6 Likely Consequences of Switch 6 Bibliography 8 Question One Problem Identification by PPP Plan The PPP (Performance Pay Plan) in Safelight Auto Glass was contemplated by Barlow who was bestowed with the responsibility related to operations in the organization…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
Performance Pay at Safelight Auto Glass
Read TextPreview

Extract of sample "Performance Pay at Safelight Auto Glass"

Download file to see previous pages The installer’s problem as identified in the PPP was related to the turnover rates. It has been found that the turnover rate of the company has been quite high because the glass installation was a seasonal business. The busy periods were spring and summer and it was found that at this time, the competition for new hires was mounting. However, the demand for the windshield replacement troughed and as a result the repair shops found it necessary to lay off many of their workers and hire them back during spring and summer. In addition to this, another biggest problem was associated with technicians who were lured by other companies’ offer, which promised to pay them a fraction more than what they were currently receiving. Therefore, as a result it was evident that the installers were changing their jobs since they were paid a Dollar more an hour and were allowed to take the company’s truck home during night. In order to reduce the turnover rate, Safelite also offered truck privileges for a time being, but then stopped it later. It was a matter of concern for the recruiters in HR with regards to getting technicians from other companies to come to Safelite. These were the problems that the PPP had tried to identify which were affecting the company’s productivity. Question Two Pros and Cons of Switching From Wage Rates to Piece Rates After going through the case study, it can be revealed that Performance Pay Plan was revised for both the managers as well as the technicians. It was decided to pay the technicians according to the piece rate system rather than the wage rate system which was previously being practiced. The plan was implemented for the technicians to receive the piece rate for every windshield that they installed. According to this plan, the number of windshield that the technician would install in a week would be accumulated. As a result, the technicians’ pay for the week was decided to be based upon the number of installations. The new plan brought both advantages and disadvantages to the technicians. Previously, the technicians received $10-$12 an hour. However, it was analyzed that according to the new PPP, the technicians would receive $15.22 per hour. Therefore, it can be examined that there would be a substantial hike in the salary of the technicians. However, the disadvantages of the plan for the technicians was that for the first twelve weeks of the plan, if the technician did not reach a weekly average which was equal to his previous hourly wage, then he would receive the hourly wage as a guaranteed rate. After that first twelve-week period, his guarantee rate would lower by 30% so that he gets encouraged to work towards the PPP rate. This is quite demotivating for the technicians. This may even discourage the technicians to improve the productivity. The other disadvantage has been that the installers were paid different rates depending on the area of the country in which they lived. It was also apparent from the case study that the technicians were at times asked to remove a work shield while the auto body work was being completed on a vehicle and then replace it later. The Safelite installers can be considered as good ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Performance Pay at Safelight Auto Glass Case Study”, n.d.)
Retrieved from
(Performance Pay at Safelight Auto Glass Case Study)
“Performance Pay at Safelight Auto Glass Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Performance Pay at Safelight Auto Glass

Human Performance: Theories and Principles of Motivation

I have been assigned two HRM consultants who are busy designing the motivation questionnaire to be administered to all the group employees. However, this also gave me an opportunity to reflect over my personal strengths and weaknesses as I would soon have the most responsible task of convincing the top management about the contents of the questionnaire and the finalization of motivation report and its possible uses in the group in the formulation of exact policies and tactics to improve employee morale. My immediate boss gave me this entire assignment breaking the line structure and formalized it by getting it ratified by the board. He also built an incentive and bonus deal for me to be awarded on the successful completion of the...
12 Pages(3000 words)Case Study

Strategy and Business Performance in Ryanair Industry

Transport accounts for over 10% of the EU’s GDP and employs nearly 10 million people. Transport also helps to bring Europe’s citizens closer together, and the Common Transport Policy is one of the cornerstones of the Single Market Of all the different transport modes, air transport has shown the largest increase in passenger volumes over the last 20 years. Expressed in passenger/kilometers, air traffic has increased by an average of 7.4 % per year since 1980.

Ryanair has a simple business strategy: make travel affordable with low fares thanks to basic service, without frills. This concept, experienced first in the US in the early fifties, gave birth to one of the biggest success stories of the last 20 years...
7 Pages(1750 words)Case Study

The Interrelationship between Organisational Strategy and Employee Involvement and Performance in the Workplace

The definitions are preceded by a general linkage point between the kind of employee involvement which could be expected within an organization’s set up as well as the long term growth agenda, courtesy the strategy itself (Beal, 2000). The motivational aspects are touched upon in detail as well as the aspects that deal with employee involvement and the like on a more proactive basis. Further within the order, the role of the top line personnel which consists of the top management is discussed in detail and lastly, the workforce diversity issues are talked about so as to have a point of understanding as far as the whole topic is concerned. (Schultz, 2003)

Organizations that are ready to upgrade their human resource...
10 Pages(2500 words)Term Paper

Why Are Performance Management Such Closely Related Aspects of Human Resource Management

Performance management systems make use of the fact that performance is increased on the part of all concerned and there is no shortfall as concerns to commitment, dedication, and devotion when at work. (Bilgin, 2007)

What this performance management system does is to ensure that the right people get the bonuses, incentives and so on as well as point out the ones who have fallen short on the company’s expectations over a period of time. This would help in giving them rewards and incentives which will eventually make one and all happy at the end. Also, this will continue their desire to achieve more and more within a specified period of time and thus come into the good books of the company. In return, they can be g...
6 Pages(1500 words)Essay

Effects of Human Resource Systems on Manufacturing Performance and Turnover

Most of these developments, not surprisingly, have come from communities of scholars focusing on their own particular countries or regions, be it the US (for example, Arthur, 1994; Delery and Doty, 1996; Huselid et al., 1997), the UK (for example, Brewster, 1999; Guest et al., 2003), elsewhere in Europe (for example, D’Arcimoles, 1997; Lahteenmaki et al., 1998; Roderiguez and Ventura, 2003). The difference in perspective on the value of people in organizations and the validity of HRM, particularly in non-Western Countries may be best understood in terms of the concept of locus of human value (Jackson et al., 2003). Jackson et al. (2003) came up with a conceptual map of international organization and human resource management...
12 Pages(3000 words)Essay

Growth Performance of Indian Economy

This percentage is expected to rise to 70% by 2030 - the largest in the world, according to a report titled Destination India- from the Investment Commission of India.” (Hood).
We all know that for more than a century, the United States has been one of the largest economies in the world. However the past few years showed major development in some countries, and the focus moved to Asian countries like India and China which were progressing very fast.

According to the experts, share in the total world GDP of India will rise from 6% to 11% by the year 2025. The GDP of India rose to 9.0% during the year 2005-06 again to 9.4% in 2006-07. The projection reports say that India will be 60% the size of the US economy...
6 Pages(1500 words)Assignment

Billing System Upgrade with Web-Based Version Project of Rick Auto Enterprises: A Communication Plan

The project is envisioned to involve changes to existing business processes, changes to existing jobs, and/or the creation of new positions. With the new web-based version, customers and auto brokers will be able to view and pay their bills online, as well as access a billing customer service agent is required. This change will affect the billing, sales, and customer service departments but it is expected to reduce costs, improve customer satisfaction, and reduce the number of days for outstanding accounts receivable.
Ownership of the existing system rests with the Billing Department. However, with the benefits projected to be derived from the upgraded system, especially with the implantation of the web-based version, the Cus...
12 Pages(3000 words)Case Study

Measures of an Effective Organizational Performance

Social capital has an important role in the goal-attainment of actors through the support of relationships. Actors could either be individual people or groups such as firms and other organizations. In groups, the social relations matter most between, and not within, the groups (ibid). Apparently, it cannot be discounted that within the group and individual has social capital in associations between people, yet then the significant actors are the members of an organization, not the organization as a whole. Like physical and human capital, social capital also demands investment to construct.
Entrepreneurs and managers nowadays are venturing into the realm of social capital because of two important elements that trail with it, w...
10 Pages(2500 words)Assignment

Using Self Efficacy to Increase Staff Performance

The methodology section of the paper makes use of the qualitative narrative storytelling approach and two separate interview sessions (one among the managers and the other among the selected employees) are employed as the primary research designs for the purpose of the study. The major themes derived out of the interviews are elaborately discussed and analyzed in Chapter 4. The conclusions of the study show that there exists an interrelated relationship between the self-efficacy of the staff and the leadership approaches of the managers or employers. The better the effectiveness of the leadership, the greater is the productivity of the workforce in an organization. The factors that contribute to the growth and development of the w...
37 Pages(9250 words)Thesis

Strategic Pay and Organizational Behavior

Both, Performance-related pay (PRP), as well as  Payment by Results (PBR), are based on the notion that if a worker can vary output by increasing his efforts, the hope of increased pay will lead him to perform his best. Both methods can be applied to an individual as well as a group level. Below is a critical comparison of the two:
Defined in simplest of terms, payment by results can be defined as the scheme of paying incentives in which, the bonus or the variable portion of the payment will be dependent on measurable values of outputs, within studied time limits.

Advantages: The primary advantage of this scheme is the inducement and motivation of workers for higher efficiency and great output. It is better th...
6 Pages(1500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Performance Pay at Safelight Auto Glass for FREE!

Contact Us