Case --- Diagnostic Products Corporation
Sha Wu
1) Evaluate the design and the implementation of the performance bonus program at DPC. What changes would you suggest, if any?
In this case, the FSE (field service engineers) is an important part of the whole corporation and also the system. The system is established to influence the performance of the FSEs to a desirable way and keep their customers satisfied. Therefore, the company designed a six areas method for the performance bonus program. Performance area | Evaluation way | 1.Cross-training | 10-40 Points | 2.Preventive maintenance completion | Each completion 2 Points | 3.Teamwork factor for PMs | 1%-2% of base quarterly salary+5-10 points | 4.Complete first visit | …show more content…
While, the creative ideas and positive attitude may not give employees a better result, because these two have more risk than do what they do as usual. Employees would choose a safety way to work, the creative ideas would disappear.
Personnel control is an assistant control in this case. The reward system partly can be seen as the personnel control. DPC cannot just use personnel control to run the whole business and to control the situation, because the system is not just to control the people, the system is an entirety, so it needs a control that can be used to control the whole entirety, otherwise, it needs more kinds of control to supply each other.
Maybe a combination of action control and personnel control can be made for work. The DPC management could assign the FSEs different jobs and make action reports or job reports to see how the employees work. At the same time, DPC can serve some training courses and rewards to encourage employees and make them happy and willing to work.
In all, the result control must be needed in this case, and personnel/ cultural control can be an assistant provide help to the result control. If the company wants to use action control and personnel control, it can combine the action control or personnel control with the other two, but cannot use them by them