The 2-2 Case Analysis Of Gain Sharing At Circleworks Business

The 2-2 Case Study is based on the CircleWorks business, nearly fifty years old, known for their custom bicycles. The Human Resource Director Sheila Gaines is considering incentives that will encourage personnel to encourage teamwork, employee involvement, and increased productivity. The organizational culture is dominant in the management practice of employees being motivated only by the satisfaction of getting the job done, while the company management is resistive to change. Taking consideration to the competitive market, and advanced technology, the HR Director feels there needs to be more incentive for employees to grow as an organization. Sheila has considered implementing incentive programs, such as, productivity bonus awards and/or a gain sharing plan (Gain Sharing at CircleWorks, n.d.). The following is an analysis of the case study and recommended considerations for the organization. Any company that uses work teams should focus on rewards to improve their behavior together instead of change individual compensation motivation. Team-based pay plans must encourage compensation for additional responsibilities when working as a team, expectations of cooperation between and within teams, and set predetermined objectives for the team to succeed. Traditional pay structures (merit/seniority-based pay) …show more content…
Group incentive programs are most successful when group members have input to increase productivity, work together to achieve a common goal, and in return will derive loyalty to the organization (p. 85). Gain sharing is a group incentive system that provide participating employees with an incentive payment based on improved company performance for increased productivity, satisfaction, lost deductions, and safety records (Martocchio, 2015, p.