Title | Case report 15 Safelite |
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Author | Anning Xu |
Course | Managerial/Cost Accounting |
Institution | University of Texas at Austin |
Pages | 1 |
File Size | 53.7 KB |
File Type | |
Total Downloads | 90 |
Total Views | 142 |
Download Case report 15 Safelite PDF
Case Report: Performance Pay at Safelite Auto Glass Safelite Auto Glass was the largest nation-wide auto glass company expanded to all 50 states. It offered mobile services, and its lower level managers were given some incentives for every store opened. Safelite also grouped store locations together and called them “markets”.
The key problem is the lack of efficiency of employees. The employees were not contributing a lot of effort. The dispatch center and technicians had many errors when communicating. Safelite introduced the performance payment plan in hope of increasing employee efficiency and lower the high turnover rate of employees.
The problem is that the bonus structure was not stable enough to incentivize employees. The “market” of stores also discouraged them to work smarter. The technician’s productivity was very low because they were not assigning jobs according to a worker’s speed and skill. No matter the speed of the workers, they all tend to get equal amount of assignments. When the office and technicians suffer from bad communication, technicians could not find the right place fast enough, therefore wasting work time....