What's The Incentive Case Study Example | Topics and Well Written Essays - 2000 words

What's The Incentive - Case Study Example The terms of employees’ payment within each organization have to be based on specific criteria: emphasis needs to be given on equality among employees so that conflicts in the internal organizational environment are avoided (Laffont and Tirole 1993). In the case of pay and reward pay package of engineers a significant dilemma appears: is this package fair, taking into consideration the changes developed in the organization since its introduction? The answer should be negative. The specific view can be justified through the following argument: the visits of engineers to the depot have been a key part of their position, meaning that their payment would be significantly lower if they were not obliged to visit the depot. In other words, the terms of engineers’ pay and reward have been arranged in this way mostly because engineers had to visit the depot many times each time, a fact that would reduce their free time for making calls to sites. It is for this reason also, that the term for a visit of at least 4 sites and the provision of reward for visiting extra sites was set in the agreement between the employer and the engineers’ union. The above agreement would not be valid today since the working conditions of engineers have been significantly altered so that a key feature of their daily tasks, the need for visiting the depot, has been eliminated. Being considered as valid, the above agreement can lead, in the short or the long term, to severe turbulences within the organization, at the level that other employees have not been favoured from similar advances in their daily tasks. From another point of view, the current pay and reward package of employees leads to another concern: the employer had suggested such package on the terms that the daily calls of engineers to sites could not be over a particular number. This means that having to visit the depot on a daily basis, engineers could not visit many sites each day; for this reason, 4 sites have