Evaluate the current reward program employed at crb

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Reference no: EM133277346

Assignment:

Car Restoration Business Inc. (CRB) a small car restoration business based in the Western Suburbs of Sydney. The organisation currently has six full-time employees: a foreman who is responsible for scheduling and overseeing the work, two auto body repair workers, a person who disassembles and reassembles cars, a painter, and a detail person who assists the painter with getting the car ready to paint and sanding and waxing it afterward. Al Brown handles sales and estimating prices, runs errands and chases down parts, and envisions the future. Mary has been doing the bookkeeping and general paperwork. The owners and employees are very proud of CRB's reputation for doing high quality work in the restoration of old cars made as far back as the 1930sCRB pays its employees based on "flagged hours" which are the number of paid hours that were estimated to complete the work.

For example, the estimate may say that it will take three hours to straighten a fender and prepare it for painting. When the auto body repair worker has completed straightening the fender, he would "flag" completion of three hours, whether it took him two hours or six hours to actually complete the work. It is to his benefit to be very fast and very good at what he does. CRB pays the workers 40 percent of what it charges the customer for the flagged hours; the other funds are used to pay the employer's share of the taxes and overhead, with a small margin for profit.

The foreman, who does some "flagged hours" auto body repair himself, is also paid a 5 percent commission on all the labour hours of the other employees, after the car is accepted as complete by the customer and the customer pays for the completed work.Employees are given feedback by Al, as well as by the foreman, and by customers on an infrequent basis. Previously, when an employee filed a case for unfair dismissal through Fair Work Commission, CRB successfully challenged the filing and usually was able to prove that Al had given a memo to the employee requesting improvements in quality or quantity of work. However, after attending a seminar on the importance of a robust performance management system, Al and his wife Mary designed a formal appraisal form.

Questions:

Q1: Does the current approach represent a performance management process? With reference to the case, be sure that your answer demonstrates an understanding of the core purpose(s) and stages of the performance management cycle.

Q2: Explain to Al and Mary the different options that exist for defining and measuring performance. Which approach do you consider will be most suitable in this organisation?

Q3: Identify the strengths and weaknesses of the current appraisal form. In your answer, be sure to use validity, reliability, cost-effectiveness and fairness as the basis of your evaluation. What changes to the form would you recommend minimising any weaknesses?

Q4: Al has expressed his desire to introduce a quarterly bonus system. Do you consider such an approach prudent? In your answer, identify and evaluate the current reward program employed at CRB. Be sure to provide a discussion of alternatives before making your final recommendation.

Reference no: EM133277346

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