CASE STUDY---Puente hills Toyota

Q2 ： At Puente Hills Toyota, most employees’ variable incentive pay increases linearly
with performance, however, performance is defined; that is, the higher the performance,
the larger the bonuses that are paid. In most large companies, however, particularly at
managerial levels, no bonuses are paid until a minimum level of performance, such as a
budget goal, is exceeded. What are the advantages and disadvantages of using a
reward/performance function like Puente Hill Toyota’s?

Ad：
1. 激励员工持续努力工作。当员工的努力，结果，激励密切相关时，员工可以通过线性
激励计划得到强烈的动力。比如说销售工作或生产工作，销售人员的努力和销售直接
相关，车间工人的努力与产出的数量和质量直接相关。在本案例中，比如说，销售人
员和助理销售经理是从完成的交易中获得佣金，分别是占毛利的 20%和 7%。
Motivate employees to work consistently hard. Employees can be strongly
motivated by a linear incentive scheme when their efforts, results, and incentives are
closely related or linked. Such as sales jobs (where the efforts of a salesperson can
be directly linked with the sale) or production jobs (where the efforts of a shopfloor
worker can be directly linked with the quantity and quality of output). In this case, for
example, the salesmen and assistant sales manager are paid commissions from the
deals they closed, which are 20% and 7% of gross profit, respectively.

Dis:
1. 消除了绩效目标带来达成某些目标的激励作用。换句话说，公司从赚取的第一笔利润
中支付奖金，即使这期间的整体业绩可能很差。员工仍然可以获得奖金即使是在公司
亏损的情况下。经理人可能对一定数额的奖金感到满意，缺少雄心壮志，而不会因为
没有一个真正的目标而如此努力工作。

然而，在我看来，目标设定对 PHT 来说似乎并不那么重要。此外，目标设定可能会产

生负面影响。例如，如果我们设定了预算目标，那么销售经理和员工就会有很大的压
力。这也不符合 PHT 的管理理念，即耶稣说的 "我们把他们当作人，而不是机械师"。
Remove the motivational effects of performance targets. Less motivated to
reach certain goals because employees make money from the start. In other words,
the company pays a bonus from the first dollars of profit earned even though overall
performance during the period may be poor. Employees can receive bonuses even
when the company is losing money. A manager could be satisfied with a certain
amount of bonus and lack the ambition to work so hard because there isn’t a real
target.