Incentive Scheme and Organizational Change: A Detailed Case Study

This case study analyzes the implementation of a new incentive scheme by "SONS AND SONS COMPANY," a chocolate manufacturer, to address low employee motivation and improve productivity. The company modified its incentive structure, reducing production targets and introducing tiered incentives based on chocolate output. This change, initiated by team leaders, aimed to boost employee satisfaction and reduce turnover. The new scheme offered incentives for both individual employees and team leaders, fostering collaboration and increased output. The case study highlights how these changes led to improved employee engagement, higher sales, and the expansion of the business. It emphasizes the importance of aligning incentive schemes with employee qualifications and experience to further enhance motivation and performance, ultimately creating a more positive and productive work environment.

Running head: Case Study
Case study

Case study
Incentive scheme- organizational change
It has been observed that change in the workplace has an essential role in the workplace. It is
important for the employees to accept the change so that activities can be managed smoothly.
Organizational change can take place in strategies, technologies and also in the process of
recruitment. If in the workplace the changes are accepted positively then it can help the company
to boost the efficiency of the employees. The company which is named by “SONS AND SONS
COMPANY” also focused on bringing changes in the incentive scheme so that motivation of the
employees can be boosted towards the assigned task. In the workplace, the performance of the
employees was not good and due to this the negative affect has been observed on the overall
growth of the company. Also, it can be said that changes made in the process can help to boost
the growth and it emphasizes on enhancing the engagement level of the employees towards work
(Bolman and Deal, 2017). The company deals in manufacturing of the imported chocolates. So,
in this area it is important for the employees to give their best so that growth can be attained.
When higher authorities evaluated the overall performance of the employees, then they decided
to bring change in the incentive schemes so that motivation of the employees can be enhanced.
The modification was made in the incentive policy so that employees can feel happy and
motivated towards the activities which are assigned to them in the workplace. Also, the change
has been brought due to the issue related to lack of motivation. It is important to motivate the
employees so that they can work with dedication and can meet their set targets. The changes
were made in every branch of the company. Earlier, the incentive structure is set when the
employees attained the highest targets of manufacturing 90,000 chocolates in a month. But by
setting this target for the employees, the management was not able to attain positive outcome.
Also, the employees were not satisfied with the decision taken by the company and there are
many skilled and trained employees who left the workplace just due to this reason. The decision
taken by the company of setting the target of 90,000 was not good, so they decided to make
modification in the entire incentive scheme offered to the employees. The discussion was made
with the higher authorities and also with the team leaders.
So, by discussing with the team leaders the company gets to know that employees are not
satisfied and motivated with the decision that was taken of the targets. So, the directors thought
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of implementing the change in the incentive structure so that the employees can get the chance of
earning more. The idea of bringing change in the incentive scheme was initiated by the team
leaders as they were able to analyze the issue faced by the team employees.
So, by analyzing the entire situation the changes were made in which the target set by the
company previously was reduced and also the offer was given to the employees to earn the
incentive on the slab of 60,000 chocolates a month. If the employee is able to manufacture
60,000 chocolates in a month then for the first 1,000 chocolates they will get 3000, then for
second 1000 chocolates they will earn more 3,500 and for more than this the bar has been set in
which the employees will earn 4000 after the completion of 1,000 chocolates. So, the slab of
earning the incentives has to been lowered with the reduced in the overall targets. When the slab
was lowered for the employees, the satisfaction boosted of the employees. They focused on
working with dedication as it is the best opportunity for them to earn more with the fixed salary.
It was the best concept introduced by the company so that the issue related to lack of motivation
can be boosted. By implementing the change in incentive scheme, the employees drop their plan
to leave the organization.
Also, the incentive scheme was changed of the team leaders. It was done as team leader are the
one who guide their employees and motivate them to work hard. If the employees give their best
and enhance the productivity of the team then they have the chance to earn incentives. So, they
have offered the opportunity of earning the incentives by crossing 3, 00000 per month of the
overall team. If the team target crosses 3, 00000 then they have the chance to earn the fixed
amount of 8,000 a month. This strategy was applied so that it can be easy to enhance the
motivation of the employees who are conducting their routine activities. With the change in the
incentive scheme of the team leader, the motivation has been boosted and also the willingness of
motivate the team members to give their best has been enhanced.
At that time of moment, it has been experienced that motivation should be there within the
employees so that it can be easy for the employees to dedicatedly work with efficiency towards
the activities of the company (Kaufman, 2017). Also, it has been observed that employees
focused on boosting their productivity of chocolates so that they can earn more. This has also
enhanced positive culture in the workplace which has also impacted the mindset of the
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individuals and also boosted the growth of the company in the highly competitive market (Steers
and Sánchez‐Runde, 2017).
The issue related to lack of motivation was experienced when the team was not able to meet their
target and the deductions were made in the salary. This was the point where the employees were
not satisfied and they think to leave the workplace. But when the changes in the incentive
scheme was made then at that time the employees who were not performing well boosted the
productivity level and also now there are employees who are earning more than 20,000 as an
incentive in the workplace. This has boosted the sales of the company and also the positive
impact has been analyzed on the overall functioning in the workplace.
With the change brought in the incentive schemes, the company also focused on the qualification
and experience of the employees so that it can be easy to make difference in the overall process
of incentive scheme. It has been noted that the employees who have only graduation degree can
earn the incentive on the graph of 55,000. Also the experienced workers who have the high
salary as compared to the graduated employees have the target of 60,000. After completing
60,000 they were able to earn incentives. This has made proper difference between the
employees who have the experience and also between the employees who are graduated. This
has enhanced the motivation level of the employees and also directed the employees towards
giving their best. By implementing the effective strategy related to the difference between the
experienced employee and graduate the positive impact has been given on the employees. The
employees created the mindset that yes management thinks of them and also wants to enhance
the sales of the company.
By implementing this change in the workplace, it can be examined that sales of the company has
been boosted and now new branch has also been set up so as the business expanded the activities
in different sectors related to fast food and also milk products. So, the implementation or to bring
change in the incentive scheme has motivated the employees to give their best towards the
activities. Now, there are employees who are earning well and also they have been tenured
enough to deal with the issues which took place. Through motivation given through incentive
scheme has enhanced the feeling of positivity within the employees (Kanfer, Frese and Johnson,
2017). Earlier the employees, who were not interested in the work, generated their interest so
that it can be easy to earn more money than the salary. It is one of the best changes brought by
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the company as they analyzed the issue prevailing in the workplace and the management thought
to bring modification so that it can be easy to reduce the issue.
Therefore, to enhance the motivation level of the employees, the company focused o bring
change in the incentive scheme so that it can be easy to boost the efficiency of the employees
towards work. By bringing change in the incentive scheme, it has been observed that
coordination and cooperation between the employees has been enhanced. Earlier, the employees
fight with each other but now they cooperate and coordinate the activities with each so that it can
be easy to attain the positive outcome. If they attain the positive outcome then it will be
beneficial for both of them as it will help in earning more incentives and can also help to boost
the positivity in the workplace. Therefore, the change in the incentive scheme was made to
reduce the issue related to lack of motivation within the employees in the workplace.
Case study questions
Question 1) What changes were made in the incentive schemes?
It has been observed that the changes that were made by the company were in the slab ratio. It
has been examined that the target was reduced by the company from 90,000 to 60,000. Also, the
changes were made in the incentive slab for the employees. The changes that were made in the
slab were related to the productivity. If the employee is able to manufacture 60,000 chocolates
in a month then for the first 1,000 chocolates they will get 3000, then for second 1000 chocolates
they will earn more 3,500 and for more than this the bar has been set in which the employees will
earn 4000 after the completion of 1,000 chocolates. So, in this way the management changed the
slab of the employees. Also, for the team leaders the incentive slab was changed. In this they
have provided the opportunity of earning the incentives by crossing 3, 00000 per month of the
overall team. If the team target crosses 3, 00000 then they have the chance to earn the fixed
amount of 8,000 a month. It has been observed that with the change made by company the issue
related to lack of motivation has been reduced. It is the golden opportunity which is offered to
the employees as it is the platform through which they can earn more than incentives. Also, this
change was suggested by the management by analyzing the situation related to lack of
motivation. So, in this way the new incentive scheme was made by reducing overall targets of
the employees and also by bringing change in the targets of the team leader. So, this can be
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considered as the best strategy considered by the management to boost the efficiency of the
employees towards the work.
Question 2) Is implementing new incentive scheme beneficial for the company?
Yes, implementing the new incentive scheme was beneficial for the company. It has been
observed earlier the employees were not satisfied with the decision given by the management in
context to the increase in the targets. Due to this the employees were not able to give their best
towards the assigned work which lead to the decrease in the overall productivity level of the
employees and also the growth of the company in the highly competitive market. So, the changes
made in the entire process have helped the company to maintain the competitive advantage by
enhancing the overall productivity level of the employees. The changes made in the incentive
policy has boosted the performance of the employee’s in the workplace and also enhanced
positivity in the workplace. It has been observed that now the employees cooperate and
coordinate with each other and also help each other at the time of facing any issue in the
workplace.
By implementing the new incentive scheme and also by reducing the targets the feeling of
motivation has been enhanced in the employees. Now the employees focus on maintaining the
relations with the other employees so that it can be easy to manage the entire activities in the
workplace. Also, it has created strategic thinking of the employees to achieve targets and to earn
more incentives more than the salary. So, this has boosted the overall sales of the products in the
market and also the efficiency of the employees towards their work. Due to high productivity
level of the employees the company is able to compete with the competitors present in the
market (Leary and Baumeister, 2017). So, this can be considered as the best strategy which has
boosted the overall sales of the company.
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References
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership.
John Wiley & Sons.
Kanfer, R., Frese, M. and Johnson, R.E., 2017. Motivation related to work: A century of
progress. Journal of Applied Psychology, 102(3), p.338.
Kaufman, H., 2017. The limits of organizational change. Routledge.
Leary, M.R. and Baumeister, R.F., 2017. The need to belong: Desire for interpersonal
attachments as a fundamental human motivation. In Interpersonal Development (pp. 57-89).
Routledge.
Steers, R.M. and Sánchez‐Runde, C.J., 2017. Culture, motivation, and work behavior. The
Blackwell Handbook of Cross
‐Cultural Management, pp.190-216.
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