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Team Based Incentives

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If appropriate what changes would you recommend to improve the incentive reward program?

Current structure:

- 40 personnel

- 8 teams of 5 personnel

- Max. Bonuses: $15,000 shared equally

- Performance measure:

o Improvement in installation time

o Customer satisfaction scores

o Additional sales

o Equipment maintenance

o Repair/callback problems


- Free riders

- Unequal distribution of job difficulty

- Bickering between the super performers and average performers

After studying Network's cable current team based structure and its complaint we noticed several improvement that can be made to tackle the problem and also enhance the structure, thee findings are:

- 'Introduce more non-monetary rewards system' - The whole structure are too monetary oriented there aren't enough incentives that can result into 'social sanction' such as reputational consequences for poor individual effort in teams. The managers can create a culture of excellence; this can be done through a quality enhancement method such as 'six sigma'. Causes of quality deficiency should be review to achieve a targeted defect rate and also special infrastructure of people within the team ("Champions", "Black Belts", "Green Belts", "Orange Belts", etc.) people who are performing above average will be recognized among members further trained to help fellow member reach their standard with this infrastructure we the structure can enjoy more effective result and also this will be the backbone of the social system.

- 'Introduce a performance monitoring system' - that can be done by the managers or a mixture of peer-to-peer evaluation, this monitoring effort will likely to assert notions of equal share in the reward only if there is evidence that you have worked hard enough or well enough. Working hand-in-hand with the 'six sigma', by introducing the evaluation system the managers can decide the promotion of personnel based on evaluation results.

- 'Introduce task difficulty grading system' - into the performance measure to prevent complaints of unequal difficulty of task given. Managers will review the task on hand and how the set back that the installer face. Bonuses will be rewarded according to the difficulty of the task. To ensure that the system is fair task



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