Analysis of Alliston Case Study: Pay System and Performance Plans

This report analyzes the Alliston Instruments case study, focusing on the ineffectiveness of its new pay system. The analysis examines structural and contextual variables, including systems of rewards, leadership, communication, and job design. The report identifies that the new pay system failed due to overly high production standards, lack of historical production data comparison, and conflicts between supervisors and workers. Recommendations include implementing a pay system that rewards employees based on meeting high-quality standards instead of solely on the quantity of items produced. The report also suggests changes such as detailed record-keeping of production rates and setting quality standards. The assignment adheres to the requirements of the HRESS 2203 course, including an executive summary, analysis, recommendations, and summary, with the goal of improving organizational performance and compensation strategy.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Answer to Question 1
Analysis of Managerial Strategy through Analyzing Structural and Contextual Variables
Alliston was capable of utilizing classical strategy as environment wherein they were
working was highly stable and with usage of Thomson’s technology, which is long liked
technology which helps in dividing tasks in sequential steps wherein each of the steps will be
performed by separate employee, for instance on automobile assembly line.
Structural Variables Managerial Strategies
Systems of Rewards and Recognition There is inclusion of the different bonuses provided
to the different individuals through the help of the
extrinsic reward wherein individual outputs are
considered for paying them with monetary benefits
Leadership Along with Decision Making Skills The Chief Executive Officer of the company are
capable of making the different decisions as per the
effective skills of leadership along with
development of the new product successfully
Analysis of Communication There is inclusion of formal communication
between superiors and subordinates
Job Related Design There are individual activities and position for each
worker

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Evaluation of Non-Working of New Pay System
The new pay system was not successful and working as the production standards set in
place for the employees for earning bonuses which was based on individual performance were
too high and there is no such way for comparing per hour production rate of each item.
Moreover, the assembly operations from the year 2012 to rate of production of 2013 of
employees were never kept. In addition, it was being noticed that the new pay system did not
help the supervisors as they were making less money in comparison to the workers and it created
high conflict among them.
Working individual Production Bonus System with Changes
The individual production bonus system could work if there are few changes which are
included such as keeping the detailed record of the per hour production rate of each and every
item for helping in comparing them with the following year. It will be helping in providing the
bonuses appropriately. The other technique which can be utilized is set the standard quality for
all employees who will be ensuring that all the materials which are being produced are
effectively done and there is no wastage of the raw materials. The final procedure will be
providing the different supervisors to supervisors on the basis of the amount of the work they
have done on supervising the employees in the past years.
Suitability of Individual Performance pay System
The individual performance pay system is not suitable for the Alliston instruments
Company as it is bringing high level of conflict between the different workers along with
supervisors. Moreover, the workers are not ready to work on hard production related jobs as they
find it highly difficult to earn bonus on such scenario.

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Recommendation
The main recommendation can be including the pay system wherein it will not be
rewarding employees based on items which are produced, but on each of the items which helps
in meeting the high standard of quality which has been set by the management.

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References
https://www.filehosting.org/file/details/856701/compensation%20and%20benefits.pdf.pdf.pdf