Reference no: EM133187690

Evaluate the performance measurement and incentive systems used at Puente Hills Toyota. What changes would you recommend, if any? Evaluate your recommendation(s) based on the critical thinking process.

At Puente Hills Toyota, most employees' variable incentive pay increases linearly with performance, however performance is defined; that is, the higher the performance, the larger the bonuses that are paid. In most large companies, however, particularly at managerial levels, no bonuses are paid until a minimum level of performance, such as a budget goal, is exceeded. What are the advantages and disadvantages of using a reward/performance function like Puente Hill Toyota's?