ATH Technologies Inc.: making the Numbers
The case of ATH is centered on management taking particular strategic paths in order to achieve the desired organization objective(s).
Beginning with the strategy of acquiring market share, Scepter implemented very attractive (personal) incentives in order to achieve this goal. These “earn out” incentives did indeed push for innovation, growth and market segment but it didn’t put any controls on the amount of spending, thus ultimately leading to major losses. The incentives focused more on personal gain i.e.: “Make the company look good at what ever cost so I can get the pay out” sort of notion. It is a good scheme in terms of promoting for continuous developments and to share know-how and make
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It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.
Instead of jumping to different achievement goals as problems arise, the visions and beliefs should have been determined first and that would help shape the overall goal of the company. While working towards goals such as profitability and growth, the visions and beliefs help keep employees in line and to some extent control the minimum expectations of the development of products, thus possibly lessen or avoid problems that did arise. The incentive scheme were not properly designed to take into account effects of employee actions and the impact it would have on the company as a whole and other stakeholders. It should some what reflect and reiterate these visions instead of promoting and motivating employees to be self interested in their own affairs and achieving the targets at “all costs”. All in all, there were minimal controls and checks in place, it was more of a one way push towards the goals and not looking back
The Core values and visions of the company are based on the customer satisfaction which plays a very important role in the company progress. The mission of the company is to deliver high technology promise to its customer service.
Therefore, it leads to the conclusion that in this case the main issue is appropriate employees motivation and satisfying job conditions, which could be achieved by choosing right incentives plan. However, sticking to the same incentives plan also might not be a good idea because people usually get used to such things very easily. As it can be seen from Engstrom Auto Mirror Company’s case employee’s motivation and morale can
Atheros is a company that manufactures many different wireless products, and this includes Bluetooth network devices, GPS solutions and chipsets, wireless network adapters, ethernet products, and Personal Access Systems technologies, also known as PAS. The company started in 1998, with a focus on the 5GHz technology. In ten years, Atheros has become a technological leader in the wireless systems space.
You have positive incentives and negative incentives. “Positive incentives are those that either increase benefits or decrease costs of an action, encouraging the action; negative incentives are those that either decrease benefits or increase costs of an action,
Everybody 's compensation incentives, financial incentives, were short-term, not long-term. There are a lot of lessons to be learned to this, but if there 's one, it 's that the compensation structures, especially for the originators, needs to be
My overall strategy was to ensure that I have a good customer satisfaction as product quality and performance was most critical. While we did have customers A and D who were large customers and value conscious – quality and performance across all
The problem with most financial incentive plans is that they become an expectation, which means they are no longer motivating better performance but merely maintaining the status quo. Staff may come to view the additional cash as part of their normal compensation. They may even start depending on it. After the plan expires, morale (and results) can suffer as staff perceive that you took something away from them.
Kisha, you made some great some very interesting points on your post, but I particularly like when you stated “monetary benefits is always key but, non-monetary benefits are important as well (Martocchio,2013). Kisha, in order to understand incentive compensation, the adult reader has to also be able to understand how monetary benefits operates. Some countries lack monetary benefits that are mainly directed towards the employee. The employee needs to be willing to commit to an incentive process that will make sense (Ridel, 2016). Monetary benefits have taxable advantages, but it will still have to be identified as taxable by the employee (Halperin, 1985). Kisha, I think that monetary benefits play a great role in how the employee will
The improvement of customer service and shareholder value should be the main aim of the whole project. At this time it’s hard to anticipate its success or failure, but by investing time and effort into it I will be confident of its success if not in the short term it will definitely in the long run.
Also, with the current incentive program does not encourage cooperation which can strengthen teams as a whole which is probable to higher store profit, with this it actually promotes cheating by creating a high demand to cheat and just focus on individual sales rather than store sales or other individuals. So the current incentive program has substantial flaws in which contradict the game theory.
Therefore if customers are satisfied then it generates down to the stakeholders being satisfied. The principle adopted in this core value is going through extreme measures to keep the customers delighted, well-nourished and happy. If this goal is achieved then the customers can help spread the word bringing more success to the organization in the end where both parties gain
A monetary incentive can be described as a fiscal price given to top performers in a company. It is a fact that these top performers are an asset to the business and should be treated well for them to stay longer. The prize is awarded in the form of project bonuses, health insurance agendas courtesy of the company, program bonuses, profit sharing and paid vacation time among others. The bottom line here is to ensure that the company’s objectives are observed. As an organization, you cannot expect a worker with financial problems to concentrate on his job but once you take care of the problem and the employee is happy, the employer will gain, and this can be evidenced in the profits the company receives. The purpose of the assignment would offer a persuasive debate on the pros and cons of Monetary incentive plan from employee motivation perspective. Additionally, the paper would discuss two companies that have implemented successful motivation plan that does not involve Monetary reward or compensation.
Company stood to lose reputation and its manufacturing license. There could be damaging legal notices and lawsuits which can harm the company for some time.
In today’s modern era, the world is moving faster than ever, every organization is running a race of gaining maximum market share, and so as the customers, for their organization’s long-term growth but only those companies who transform themselves according to the need and requirement of the customers are able to achieve success and profit they desire and that’s what exactly said by Theodore Levitt (Head of the Marketing area at the Harvard Business School) in his article “The Marketing Imagination”.
Introduction:Businesses has grown on fast pace in last few decades. This rapid growth in business ha snot only increased the competition but also provided the customers to choose from the products .increased competition and market uncertainty has left organization to think the ways to retain and attract more and more customers. Wining the heats and minds of customers is now the ultimate goals of much organization to earn profitability. (Kicaid, 2003) It is because organizations know a satisfied customer can refer many new customers to them with no cost of marketing. Customer