Case Study 2

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1_Mitron company’s use the person focused pay that is paid an hourly pay rate plus a team based

bonus
payment for each computer that is built on time with no defects, and a little incentive for the
technicians to attend the training. It is differentiation in the market by the high quality computer that it
produces, but it faces 2 problems, the first is that it has a delay in delivery the computer to customer in
time, and the second one is that their employees doesn’t attractive to do training that the company
make that lead to the shortage of higher-level skilled workers.

The advantages of person focus pay are:

1) It helps to improve the efficiency of its employees by enhancing their skills and doing their work more
efficiently and performance tasks very well.

2) It encourages workers to gain more by improving their skills and knowledge that increases tasks that
they can do and in and therefore increase their work time and their payment .

3) It makes the employees multi-tasking helps to fill the position of any other employee who is absent or
leaving and getting more money by working for more time.

4) It makes the employees motivated to achieve work in the best quality and save the differentiation of
the company from their competitors.

The disadvantages are:

1)It does not reward employees directly for their knowledge, abilities and individual strengths because it
focuses only on specific capabilities and hourly work.

2)employees choose to focus on their work because they receive monetary incentive for meeting hourly
successful production goals rather than taking skills training in inventory control for which they earn
little amount of money from it .

3)lack of innovation because employees focus their job in one specific task that can capture money from
it, not in innovating new things or ideas .

4)hourly labor costs increase because greater specific capabilities should translate into higher pay levels
for the majority of employees plus the cost of training that the company pays for it but a small number
of employees do it because they found that the training leads them to lost hours in work and therefore
their hourly pay rate.

2_First, I put a training programs for workers, and I keep the salary for all participates working in the
same agreed manner if they do their work, that is based in the hourly rate pay, then allocate an
incentive pay for them to their participation in this training that lead them to be more motivated and
participate in the training, moreover I also put a incentive rate for everyone who normalizes what he
learned in training and practice it while in doing his job. In this way I attract a big number, if not all
workers, to participate in training and learn more skills to practice it to achieve their goal more
effectively and efficiently.
Second, I don’t put an incentive pay rate for the work group only if the work is done successfully, but I
put it if the computer is done successfully and on time. In this way I differentiate my company in two
things, in high quality of the computer and in the delivery of the order on time.

3_I can see how the individual pay program would be more desirable, even more-so for an employee
who’s unsure of their capabilities or unwillingness to learn. The incentive pay is in addition to what
they’ve already earned in regular pay, so there’s a guarantee here for planning how much money
they’re bringing in. Person-focused determines what the employee makes based on knowledge and
skills. So if they aren’t learning and progressing neither is their pay, plus there’s no incentive. Therefore,
in my opinion I found that the individual pay is more preferable because it focuses on the performance
that is why employees always try to take skills and knowledge to perform their job better and has a
more incentive that is affected positively to the company.

4_Security Guard: In this technological age, being a security guard does not require you to have any
skills at all as there are high tech security cameras and alarm systems that are available in the market. It
can instantly inform the residents as well as the watchmen on duty when a trespasser has encroached
upon a particular property. That was person focused pay here do not match.

Entry information: In any company, industry, or supermarket, to enter information, usually name,
address, telephone, etc. information into a database, which is a computer program that tracks and
organizes such information. The most critical aspect of data entry is that the information is entered with
no mistakes, and the format is consistent. This needs a small training in the beginning of work only that
it is not inappropriate to use here the person focused pay because it does not need skills or knowledge
to pay for it.

Waiter: To be a waiter in a restaurant, you must have a cheerful face and have the ability to tolerate
customers. Your work is limited, it is to take orders from customers and return to them with what they
requested. Person focused pay here does not match because no need for skills and knowledge.

Delivery job: This person does not need any skills or knowledge in doing his job because his job is simply
us to deliver the order to customers. The payment is according to the number of orders that are
delivered in most time or a fixed pay plus an additional incentive pay for each order he delivers.

That is the person focused pay is inappropriate in this job.

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