HP Computers
HP builds custom personal computers for several office supply chains. The companys ability to build a quality product to specifications in an efficient manner allows HP to hold an advantage over competitors. However, recently the company has experienced some delays in shipments, and the plant manager is growing concerned. The technicians at HP work in teams to build the computers to the desired specifications. It is a complex process, and the technicians ability to build the computers efficiently has helped build HPs reputation as a quality producer of personal computers.
Depending on the specifications, building each computer can involve between 10 and 18 different steps. Most technicians have the knowledge and skills to complete one or two of the steps, but some technicians can complete multiple steps. Each step in the building process involves intricate procedures, and a technician must take the initiative to attend training to learn each new step and get paid for the knowledge. However, there is little incentive for the technicians to attend the training with person focused pay plan.
The technicians work in teams to build the computers, and they are paid an hourly pay rate plus a team based bonus payment for each computer that is built on time with no defects. The teams are composed of technicians that have complementary skills, but the company has had some delays when a team member with the skills to complete a certain step is absent or already working on another computer. HP encourages vertical and horizontal skills that enable employees to gain significant depth of expertise in managing their work and responsibilities.
Jiff Anderson, HPs human resource director, has been asked by the plant manager to examine the technicians pay structure to determine if a change in the structure could affect the technicians efficiency. According to Anderson, job-point accrual develops skills from different job families.
Kindly answer the following questions in relation to the case study above (50 pts)
Which pay plan generally rewards employees for building quality products to specification at HP according to the objectives? *
A) knowledge-based
B) seniority
C) longevity
D) job-based
This type of pay system rewards employees for successfully acquiring new job-related knowledge. *
A) person-focused pay
B) competency-based pay
C) merit pay
D) incentive pay
Which compensation approach refers to three types of person-focused pay programs? *
A) competency-based
B) innovation-based
C) service based
D) stair-step
This type of pay program rewards employees for successfully learning specific curricula. *
A) skill-based
B) person-based
C) pay-for-knowledge
D) incentive
Which of the following pay systems is used by the company to reward their employees for increasing technical abilities? *
A) knowledge-based
B) incentive
C) skill-based
D) merit-based
Employees would need to learn these types of skills in order to develop self-managed work teams. *
A) horizontal
B) vertical
C) depth
D) breadth
This term refers to the level of specialization or expertise an employee possesses in a particular job. *
A) vertical skills
B) depth of skills
C) breadth of skills
D) horizontal skills
Person-focused pay programs that emphasize vertical skills work well at manufacturing companies that organize work flow around which type of organization? *
A) departments
B) high performance work teams
C) task forces
D) business units
This is considered “at the heart” of person-focused pay programs in HP. *
A) innovation
B) management
C) training
D) data
Which pay model promotes learning and skills development for a wide variety of jobs from different job families? *
A) cross-departmental
B) job-point accrual
C) stair-step
D) skill blocks
Campomatic Home Appliances:
Adam Johns works for a home appliances company. He recently joined Campomatic and has some ideas for David Araka, the companys CEO. Adam likes working for David because he is very open to employee suggestions and is serious about making the company a success. Campomatic is currently paying Adam a competitive hourly pay rate for him to build various designs of TVs and ovens and encourages the employees to learn new skills. However, Adam thinks that an incentive pay plan might convince him and his co-workers to put forth more effort.
At Adams previous employer, a competing home appliances maker, Adam was paid on a piece-rate pay plan. The company paid Adam a designated payment for every piece that he completed. Adam felt this plan provided him an incentive to work harder to build home appliances design. David likes Adams idea; however, David is concerned about how such a plan would affect the employees need to work together as a team. Also, It is easier to develop performance measures for group incentive plans than individual incentive plans. David implemented Scanlon plan to make employees more involved. Additionally, she was convinced in profit sharing plans and employee stock options for all employees instead of individuals.
While the workers at Campomatic build most home applinaces pieces individually, they often need to pitch in and work as a team. Each worker receives individual assignments, but as a delivery date approaches for a pre ordered home appliance due to a customer, the workers must help each other complete certain pieces of the set to ensure on-time delivery. A reputation for on-time delivery differentiates Campomatic from its competitors.
Kindly answer the following questions in relation to the case study above (50 pts)
Which pay plan generally rewards employees for building quality products to specification at HP according to the objectives? *
A) knowledge-based
B) seniority
C) longevity
D) job-based
This type of pay system rewards employees for successfully acquiring new job-related knowledge. *
A) person-focused pay
B) competency-based pay
C) merit pay
D) incentive pay
Which compensation approach refers to three types of person-focused pay programs? *
A) competency-based
B) innovation-based
C) service based
D) stair-step
This type of pay program rewards employees for successfully learning specific curricula. *
A) skill-based
B) person-based
C) pay-for-knowledge
D) incentive
Which of the following pay systems is used by the company to reward their employees for increasing technical abilities? *
A) knowledge-based
B) incentive
C) skill-based
D) merit-based
Employees would need to learn these types of skills in order to develop self-managed work teams. *
A) horizontal
B) vertical
C) depth
D) breadth
This term refers to the level of specialization or expertise an employee possesses in a particular job. *
A) vertical skills
B) depth of skills
C) breadth of skills
D) horizontal skills
Person-focused pay programs that emphasize vertical skills work well at manufacturing companies that organize work flow around which type of organization? *
A) departments
B) high performance work teams
C) task forces
D) business units
This is considered “at the heart” of person-focused pay programs in HP. *
A) innovation
B) management
C) training
D) data
Which pay model promotes learning and skills development for a wide variety of jobs from different job families? *
A) cross-departmental
B) job-point accrual
C) stair-step
D) skill blocks
