The Theoretical Method
The strategic compensation procedure discussed in the John Deere case study are a competitive advantage for the organization. The reason behind is that the new compensation plan offers a win-win position to both the employer and the employee. For instance, the new procedure encourages teamwork and rewards it. The result for cooperation is improved sale for the organization and improved esteem and experience for the employee. The plan also promotes creativity and innovation. It rewards any employee who shares new and productive ideas with colleagues. The sharing also helps the company to increase its sales. Finally, the incentives of the company are divided among the team members as they also get rewarded with bonuses for jobs well-done. Consequently, the company attracts a highly skilled workforce which steers the productive ideas and decisions (Sprinkle & Williamson, 2004).
Furthermore, teamwork enhances the continuous improvement pay plan decisions (CIPP). It is through collaboration that collective efforts can be made to meet the weekly production quota. For instance, the CIPP encourages the teams to slash their input hours yet meet the quotas. Therefore, the teams meet separately and brainstorm on new strategies of achieving their quotas. They devise ways of cooperating, and filling the gaps caused by sick, absent or slow colleagues. Hence, with such team effort, the speed of production and efficiency of the work is enhanced (Sprinkle & Williamson, 2004).
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It is perceived that the team-based approach is more rewarding than the individual based incentive plan. The team-based approach is more economical to maintain because it eliminates the need for individual auditing of employee efforts. The team-based approach also improves the productivity of the company by ensuring that the teams achieve their quotas within the shortest time. In addition to that, the team approach also improves the sales of the company due to the increased efficiency of a highly productive workforce. In addition to that, teamwork encourages growth and innovation of every team member because knowledge and ideas are freely shared with team members (Sprinkle & Williamson, 2004).
References
Sprinkle, G. B., & Williamson, M. G. (2004). The evolution from Taylorism to employee gainsharing: A case study examining John Deere's continuous improvement pay plan. Issues in Accounting Education , 19 (4), 487-503.
