1.

For individual employees the company production bonus plan is what type of reward
program?
a) Merit based
b) Piece rate
c) Variable
d) Skill-based

2. To be more effective the company should research and examine “group or

organizational” based pay-for-performance programs?
a) True
b) False

3. Organizations must be careful not to send the wrong message when offering rewards.
Which of the following obstacles is not generally associated with developing an effective
employee reward or recognition system?
a) Management often focuses on short term results
b) Individuals find it difficult to break out of old ways of thinking
c) Organizations don’t look at the big picture and how business units actually interact
d) Collective agreements

4. John’s report may have to be critical of the new production bonus program. Which of the
following ideas should John not include in the report?
a) Suggest that employees be directly involved in establishing production targets
b) Ask management to better define what constitutes a finished home
c) Request management implement a formal Quality Control(QC) program
d) Recommend employees caught cutting corners or doing shoddy work not be
included in the program
e) Arrange for meetings with assembly line units to discuss the increasing problems with
quality and shipping delays
 f) Over time a cash reward performance program with poorly developed targets will
become less and less effective and employees will simply regard the payments as part
of their regular compensation and benefits package?

5. A poorly designed reward or recognition program will, over time, simply become part of
an employee’s compensation and benefits package and no longer be an effective way to
motivate employees to influence better performance.
a) False
b) True

Briefly - What should John do next to fix this problem?

Demand for the company’s homes has steadily increased and management must produce more
and more homes to meet the customer demand. In order to achieve this target, management
introduced bonus program which is good to the employees and employees also work hard to get
the bonus. But there is no point in achieving monthly or weekly targets and deliver the homes to
customers. It is more meaningful and benefit to the company if they look after demand along
with quality of the finished homes. all employees only work hard to produce more and more
homes by working hard, while producing quality less product. As a result, poor quality
complaints also increased. In order to achieve mutual benefits, management has to introduce
more sophisticated rules and regulations on how to quality finished homes and possible quality
problems they may face and educate employees on the same thing.

John should do,

-Send clear guidelines to all employees in order to receive the bonus rewards.
-should note all the quality issues raised by the customers and prepare proper steps to avoid these
kinds of issues and then, share with employees on weekly basis. Its good idea to have formal
meeting to discuss quality issues raised by customers.
-There should be proper training to the employees to familiar with the manufacturing process.
-should perform multiple quality check programs before delivery to the customers.
-if possible, hire quality assurance specialist to look after all quality related issues and take
necessary steps to avoid quality issues.
-Need to provide bonuses based on the performance and if employees meet target deadlines with
quality finished good.