This approach would be a more realistically less risky adoption of PPP, with as possible as less negative possible effect and result of this action.
And there remains only one obstacle illustrated in answers to question one, the external factors- variable seasonal demand. Its operations are also well — designed and concentrated to the extent which resources within the company can be exploited efficiently.
If so, how should it be set? What are the likely consequences of a switch from wage to piece rates for turnover, recruitment, productivity? Along with less risky cost, which is the huge benefit of adopting PPP in a limited scale, because Safeite can fully take advantage of its existing organization tracking system consist of geographical divisions of regional markets, it can save expenditures incurred by PPP.
The reason is that PPP is in and of itself not alienated from quality emphasis.
The indivisible attribute of PPP with quality is determined by the Safelite essay of the glass installation work. If there should exist some kind of guaranteed wages as a warranty to technicians to ensure that their living standard would not be dropped down on account of PPP, is should be applied during fall and winter corresponding to the seasonal changes of economic conditions embodied in auto glass industry.
Think about it, if any company takes the risk of changing its compensation and Safelite essay system, it will be in the long run the champion in the industry.
The only problem here that affects the productivity of technicians, despite it is out the control of technicians but it is in the charge of management is corporation between workers from different functional section of this centralized system. Should there be a guaranteed wage? What are the pros and cons of switching from wage rates to piece rate pay?
We can make its implication decline to a minimal by doing the suggestions presented in the latter advertisement section of this essay. This assumption can be self-explanatory.
Guaranteed wages should not be utilized in the other two seasons of the year when demand is in its peak. Safelite was the first and only company in its industry to carry on the strategy of becoming a national auto glass company by the way of expansion.
Information transferred more quickly within different segments of one market, so the awarding level requiring technicians to make efforts to achieve can only be realistic and reasonable, otherwise without other supports technicians themselves cannot expect to work more efficiently if they are presumable not lazy than they try very hard currently.
Although the cons of PPP are obvious and explicitly expressed and the pros of PPP are somewhat ambiguous and invisible, the advantages of PPP undoubtedly cannot be ignored and can generate profound impacts on the long-term productivity of Safelite.
And this is the only part of productivity metric PPP could dictate. Is Safelite a good candidate for switching from wage rates to piece rates? So in this aspect, uncoordinated problem can be resolved relying on the managerial capability of managers.
Our opinion is yes. Auto glass industry traditionally has high turnover rate. Because the labor market are so unstable and there are no guarantee existed, technicians must earn as much as possible during spring and summer to offset their expenditure of fall and winter when they had no work and income.
Because the quality of the glass installation can be examined just before the completed delivery of the work, otherwise this work cannot be supposed as completed and will not be counted in the total quantity of installation used in PPP to calculate compensation.
However, seasonal factor not only influence Safeite, it also takes effects on other auto glasses. In this high point of demand curve, PPP can exercise considerable influence on motivating performance of technicians. Moreover, the strengths of this approach are bountiful.
Loyalty of employee is an invisible and a precise assent of a company and it in the long term makes employees have confidence in that company, and make full commitment to their job, consequently make that company more competitive and profitable.
In other words, Safeite can benefits from PPP, and the optimum way it can most efficiently achieve them is to adopt the test model approach. If the result of the example would justify the administration of PPP, then Safeite management will be able to take the next step: Taking the role of a third-party administrator of claims, Safeite constructed mutually beneficial partnership with 17 of the top 20 national insurance companies by on the one hand, lessening the burden costs of insurance companies; on the other hand, bringing in more insurance units for Safeite itself.
What are the likely consequences of a switch from wage to piece rates for product quality? And it is because of this sophistication accompanying with adoption of PPP that makes the test model approach more critical and necessary. Meanwhile, this centralization strategy makes the resources allocation among the whole company more efficiently and makes the service delivered to customers more timely.
Recipe for Safeite An assured assertion of introducing PPP and at the same time makes as little as possible adverse impacts on productivity, turnover rate, and morale of employees lies in the assumption that Safeite will overcome of the initial pain of changing payment structure, therefore it could achieve high productivity level and maintain turnover rate lower than average level of the industry.
Yet the absence of guaranteed wage in the through season is not acceptable and reasonable. So, it is not difficult to understand why technicians were easily lured away by other companies offering them only a fraction more than they currently received. To do this, like a test model to testify the correctness of basic assumption of PPP and the overall employee reaction to it.Essay on Performance Pay at Safelite Why was the productivity of Safelite installers so low?
Ans) Safelite was the largest nation-wide auto glass company in the United States with about stores, more than employees and trucks. The proposed PPP (Performance Pay Plan) plan introduced at Safelite was initiated with the objective of increasing productivity in installation of glass units.
Essay Safelite Glass. Performance Pay at Safelite Auto Glass Safelite Auto glass introduction of the proposed PPP plan to increase the productivity of the installers is going to bring more problems for the organization.
One of the major reasons for this is the decrease of the technicians guarantee rate by 30% after 12 week period. Essays & Papers Safelite - Paper Example Safelite As a largest nation-wide auto glass company maintaining the largest market share, Safelite faced what was called ‘glass ceiling’ in productivity - Safelite introduction.
Safelite Glass Essay Performance Pay at Safelite Auto Glass Safelite Auto glass introduction of the proposed PPP plan to increase the productivity of the installers is going to bring more problems for the organization.
Read this essay on Safelite Autoglass. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at billsimas.com".Download