250 word response

Post DQI by day 2, Alaskan Tire Corporation redesigned its production facilities around a team-based system. However, the company president believes that employees will not be motivated unless they receive incentives based on their individual performance. Give three (3) explanations why Alaskan Tire should introduce team-based rather than individual rewards in this setting

 

It is believed that only a limited amount of employees view their relationship between job performance and the amount of pay they receive equal. The team incentive is set up so that either everyone gets the incemtive, or no one gets it (McShane & Von Gilnow, 2013). During our life span we will all encounter a period in time where we are a part of a great team and other times when we must work in isolation towards our goal. There are many great benefits to an organization developing teams for its employees to work within. When working as a team employees are able to create ideas that will receive a more favorable result, employees develop a support network within the team, tasks are often achieved at a quicker pace, employees may acquire new skills from their team members and they tend to be more satisfied with work.

Organizations are finding that individually based reward systems do not necessarily support today's team-based organizational environments (Zingheim and Schuster 1997). Team-based approaches towards organizing work is on the rise and has illustrated the need to identify methods that reinforce and foster teamwork among workers. By Alaskan Tire introducing team based rewards rather than individual based rewards the organization will help employees develop trust in their fellow employees, team trust can be influenced by rewards set in place. Implementing compensation plans to reward employees for teamwork success produces great synergy throughout the organization. Team based rewards allow organizations to tie rewards to specific goals, such as increased customer satisfaction scores or reductions in unnecessary receivables.

 

 

References

McShane, S. L., & Von Glinow, M. A. (2013). Organizational Behavior. New York: McGraw-Hill.

Zingheim, P.K., and J.R. Schuster. "Best Practices for Small-Team Pay."ACA Journal. Spring 1997. 6(1):40-49.