Case The Carter Cleaning Company The Incentive Plan

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Chapter 12: Pay for Performance And Financial IncentivesContinuing Case: The carter cleaning company: The Incentive Plan 1. Should this plan in its present form be extended to pressers in the other stores? Ans: No, not in its present form. While the piece-rate plan does make more effectiveuse of Wan’s time and save the company energy money, the quality control issue is a problem. There needs to be an included incentive for quality. 3. Should other employees (cleaner-spotters, counter people) be put on a similarplan? Why? Why not? If so, how, exactly? Ans: It makes sense for some positions but not for others. Cleaner-spotters are production employees who could also benefits from a similar plan. It would have tohave a quality incentive that makes sure they actually get the garments cleanedcorrectly! An incentive plan that focuses on customer satisfaction makes more sensefor the counter people.…show more content…
5. A store manager’s job is to keep total wages to no more than 30% of sales and tomaintain the fuel bill and the supply bill at about 9% of sales each. Managers canalso directly affect sales by ensuring courteous customer service and by ensuringthat the work is done properly. What suggestions will you make to the companyfor an incentive plan for store managers?

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