Fundamentals of Organizational Behaviour, Fifth Canadian Edition
Chapter 4— Motivating Self and Others
Bill Leung is the HR director for Copper Inc., a mining firm. The business has been
losing money over the past three years due to a worldwide slump in copper prices, and no
end is in sight. The pressure is on to reduce labour costs. Bill has been asked to
recommend an incentive pay program for miners to attempt to increase the amount of ore
they extract from each site, while still meeting quality targets. Safety issues are also very
important, as even minor accidents add tremendously to costs. The miners work in teams,
so the plan must not upset their team interactions; however, the miners have little
involvement in the company outside of their immediate jobs.
Referring to SCENARIO 4-4, what kind of incentive plan should Bill recommend for the
miners?a. piece-rate plan
b. profit-sharing plan
c. ESOP
d. team-based pay
e. gainsharing
60) SCENARIO 4-4
Bill Leung is the HR director for Copper Inc., a mining firm. The business has been
losing money over the past three years due to a worldwide slump in copper prices, and no
end is in sight. The pressure is on to reduce labour costs. Bill has been asked to
recommend an incentive pay program for miners to attempt to increase the amount of ore
they extract from each site, while still meeting quality targets. Safety issues are also very
important, as even minor accidents add tremendously to costs. The miners work in teams,
so the plan must not upset their team interactions; however, the miners have little
involvement in the company outside of their immediate jobs.
Referring to SCENARIO 4-4, Bill must also recommend a plan for the research
department staff. It is more difficult to assess researchers’ performance because of the
kind of work they do. Recently, a number of researchers have been laid off because of the
company’s losses, and so each staff member must get involved in new kinds of projects.
Flexibility and communication between project team members is very important. What
kind of incentive plan should Bill recommend for the research staff?a. skill-based pay
plan
b. piece-rate plan
c. profit-sharing plan