What conditions led to low levels of productivity of the Safelite installers?

Words: 402
Pages: 2
Subject: Premium Writing

Read the Performance Pay at Safelite Auto Glass case, which describes a company’s changing of its compensation and incentive plan. In particular, it shows how a change from hourly pay to piece rate pay (for windshield installers) affected productivity, pay, and turnover. Write a case analysis that addresses the following questions:
What events led Safelite Auto to consider changing its compensation approach?
What conditions led to low levels of productivity of the Safelite installers?
Does the proposed pay for performance plan (PPP) address the problems discussed in Question #2? Analyze the underlying economics of the plan (utility analysis). Does the new plan introduce new problems? Support your answer.
Is the installer position job design appropriate for piece rate pay plan design? Why or why not?
Should there be a guaranteed wage? If so, what would you recommend in terms of compensation leverage (mix between base and incentive compensation)?
What are the likely consequences of a switch from wage to piece rates for the following:
Turnover
Recruitment
Productivity
Product quality
Coordination between roles at Safelite
What recommendations, if any, would you make to improve the plan design for Safelite?

ms? Support your answer.
Is the installer position job design appropriate for piece rate pay plan design? Why or why not?
Should there be a guaranteed wage? If so, what would you recommend in terms of compensation leverage (mix between base and incentive compensation)?
What are the likely consequences of a switch from wage to piece rates for the following:
Turnover
Recruitment
Productivity
Product quality
Coordination between roles at Safelite
What recommendations, if any, would you make to improve the plan design for Safelite?